Personal bankruptcy in the United States is a legal process that allows people to get rid of their financial debts and begin fresh. The court can automatically eliminate any owed debts. It is essential to find out if your tax debts will be eliminated by bankruptcy before making any decisions.
Who Can File for Bankruptcy in Florida?
The bankruptcy code permits individuals, businesses, or other entities to seek relief from their creditors. To be eligible for Florida bankruptcy protection, the debtor must have a permanent residence in Florida. In addition, the debtor must promptly file all documentation and attend all hearings.
How to File for Bankruptcy in Florida
Individuals who reside in Florida and are experiencing financial difficulties may file for bankruptcy protection under Chapter 7 or Chapter 13 of the United States Bankruptcy Code.
Your contact information, income, and assets must be included in the bankruptcy petition. Once you have completed the petition, you must file it with the court and give copies to creditors. A meeting of creditors will be called approximately 20 days after your petition is filed.
What Happens to Your Tax Debts After You File for Bankruptcy in Florida?
These three factors could help you forgive your tax debt:
1. Different Types of Taxes
Sometimes, you can get a partial refund under Chapter 7 or a full refund under Chapter 13. You may be eligible for a partial refund or full refund under Chapter 7 if you owe back income taxes. Property taxes might also be exempt in rare cases.
2. The Age of Tax Debt
Any tax debt older than three years is eligible for bankruptcy. Any “new” tax obligation incurred in the past two years is not suitable for cancellation.
3. Correct Submission of Your Tax Return
To be eligible for a tax discharge, you must have filed your taxes correctly. You may be disqualified from a bankruptcy tax debt waiver if you have tried to evade or falsify your tax return in the past.
This post was written by Trey Wright, a lawyer with extensive experience as bankruptcy attorneys in Panama City Florida! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.
