My situation is the following: i owe about 16,000 to the IRS from 2005, and about 1800 to the state franchise board due to a family emergency we had in 2005, because of my parents health i need to leave to my country of origin to take over my family's small business. I might be gone for 1 or 2 years, maybe even longer , i cannot pay this money at the time, so i am thinking of going into bankruptcy , what will happen , do i still need to pay them after ? Im lost what will happen? this is a first for me"
2007-08-13 05:28:09 · 6 answers · asked by lobito 1 in Business & Finance ➔ Taxes ➔ United States
you always have to pay taxes no matter what
2007-08-13 06:40:58 · answer #1 · answered by san_ann68 6 · 0⤊ 0⤋
Sorry, but filing bankruptcy will not erase the taxes owed.
There are a couple of options that you can try though.
One is an offer in compromise, where you pay less than 100% of what you owe.
Another is an installment agreement, where you pay what you owe in full, but pay it over time. The bad thing about the installment agreement is that interest keeps building while you are paying what is owed, and if you miss a payment the irs can void the agreement and demand payment in full immediately.
I have attached links to offer in compromise, installment agreement, delays in payment, hardships, etc.
2007-08-13 06:09:03 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Taxes are not dischargeable in a normal bankruptcy. I have heard that VERY old taxes can be discharged if RARE circumstances. I have never heard an explanation of those circumstances that I could follow. Also note: the only people I have heard make the claim also claim to be bankruptcy attorneys. There MAY be a conflict of interest in their statements.
2016-05-21 06:45:20 · answer #3 · answered by ? 3 · 0⤊ 0⤋
In October 2005 BushCo changed the rules on bankruptcy. Yes, you will owe that money till the day you die and then your estate will owe that money. Used to be that bankruptcy let you wipe the slate clean and you endured seven years of no credit. Now all it does is force creditors to work with you to come up with a payment plan.
2007-08-13 05:52:11 · answer #4 · answered by Anonymous · 0⤊ 1⤋
With new laws in effect there is two things that dont go away with bankruptcy.
1. Credit Card Debt
2. Taxes owed to government
The difference is you can be brought to court to pay CC debt, and if you owe taxes they can sieze anything you own to pay off that debt and if there is still a balance you can go to jail.
2007-08-13 05:38:38 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Bankrupcy will not erase what you owe to the IRS.
2007-08-13 05:52:25 · answer #6 · answered by Judy 7 · 1⤊ 0⤋