Did you know that some taxes can be discharged in bankruptcy? Many people, including attorneys mistakenly think that bankruptcy does not apply to taxes. While our bankruptcy practice is not exclusive to taxes, as a tax and bankruptcy law firm we have special expertise to apply in bankruptcy cases, in which taxes are an issue.
There are several types of bankruptcy. If bankruptcy is the right choice for you, it is important to have competent advice to help select the type of bankruptcy most helpful to you and your unique circumstances.
Chapter 7 provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors. The goal is to leave your debts behind at the end of this process.
A chapter 13 bankruptcy is called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
Chapter 11 – Small Business
Chapter 11 generally provides for a business reorganization. A chapter 11 debtor proposes a plan of reorganization to keep its business alive and pay creditors over time.
Unfortunately, none of these options are as simple as they sound. Bankruptcy law is complicated. The choice to file bankruptcy, the choice of which type of bankruptcy you can and should file, the choice of how to proceed once you file, all require a deep understanding of the law. With decades of experience, we can help you make the right choices.