Tax Debts in Chapter 7 Bankruptcy in Oklahoma City, OK
If you need more information about your tax debts in Chapter 7 bankruptcy in Oklahoma City, OK, an experienced bankruptcy attorney from Marty Martin Bankruptcy Law.
You might already be familiar with bankruptcy, and if your financial situation is desperate enough, you might already be considering filing for bankruptcy so you can get out of any crushing debt. But declaring bankruptcy without fully understanding the consequences is like jumping from a plane without a parachute – you have to have a firm grasp on what bankruptcy entails before you take drastic action to save your financial situation.
Declaring bankruptcy may help you feel freer than you have in years, and once you get started on liquidating your assets, the pain of selling off you possessions may be eclipsed by the relief you’ll feel knowing you’re finally out from under your debt. But there are long-lasting consequences to filing bankruptcy: Some bankruptcies stay on your record for up to ten years, and during that time it’ll be more difficult for you to apply for loans, housing, and even jobs. And even after all this, you may not find the relief from tex debts in your Chapter 7 bankruptcy in Oklahoma City, OK.
Understanding Your Bankruptcy Options:
When you declare bankruptcy, you have two main options: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is known as a “clean slate” bankruptcy: It involves selling off your assets (this includes second properties, cars over a certain value, collections, and even family heirlooms) to pay off the debts you owe creditors. Chapter 13 takes a bit more work, but doesn’t usually involve selling off your assets: Instead, you’ll have to follow a court-mandated repayment plan.
Both types of bankruptcy have their strengths and weaknesses, and many people are drawn to Chapter 13 because they don’t usually have to liquidate their assets. However, Chapter 7 provides more of a fresh start. But even when you liquidate your assets, you’re not totally out of the woods.
Do I Still Need to Pay Off My Taxes?
Unfortunately, yes – in most cases. Even if you file Chapter 7 bankruptcy, some debts are unavoidable. These are called nondischargeable priority debts, and declaring bankruptcy won’t get you out of paying these (unless your lawyer can walk you through how to avoid them). Nondischargeable priority debts include student loans, child or spousal support, and any sort of fine you owe the government. Additional examples of nondischargeable priority debts include any money you may owe someone if you caused them an injury while intoxicated, and the price of any luxury goods you purchased within 90 days of your filing for bankruptcy.
Filing for bankruptcy may look like an easy way out, but it’s much more complicated than many people think. If you need to get out from under crushing debt, bankruptcy may be the best path forward for you, but you need to fully understand what the process entails, and you need to know how to navigate the process of paying off any remaining debt.
Reach out to a lawyer that specializes in tax debts in Chapter 7 bankruptcy in Oklahoma City, OK, today, and see how Marty Martin Bankruptcy law can help you.