Control Your Tax Debt with Arizona Chapter 13 Bankruptcy

Owing new taxes or back taxes to the state or federal government is a serious matter. Besides the taxes themselves, there are penalties and interest that must be paid on the outstanding amounts. The totals can quickly become staggering amounts of debt if left uncontrolled.

Tax Debt and Arizona Chapter 13 Bankruptcy

Some tax debt is not dischargeable in a bankruptcy filing. Non-dischargeable tax debts must be paid in full. But filing Arizona Chapter 13 bankruptcy can still bring relief for non-dischargeable back tax debt. In the Chapter 13 bankruptcy process, the Bankruptcy Code determines which of your creditors are repaid, at what amount, and in what order. Liabilities to the IRS and the Arizona Department of Revenue take a priority position in this distribution process. Your Chapter 13 plan will contain a repayment plan with payment amounts that fit your budget and allow you to repay tax debt over 3-5 years.

Penalties, Interest and Arizona Chapter 13 Bankruptcy

As an additional benefit to an AZ Chapter 13 bankruptcy filing, it may be possible to reduce or eliminate the interest and penalties added to the tax debt. An experienced bankruptcy attorney will need to evaluate your tax situation to determine if or how much you might be able to save through the bankruptcy repayment plan.

Take Control of Tax Debt with Arizona Chapter 13 Bankruptcy

There is no good reason to ignore a tax debt; it will only continue to spiral out of control. Addressing the tax problem will bring emotional relief along with a solid financial plan.

Owing back tax debt is only one reason to consult with experienced bankruptcy lawyers such as Radix Law, with offices in Phoenix and Scottsdale, AZ. There could be many ways that a Chapter 13 bankruptcy could significantly help your financial situation, and the Radix Law’s bankruptcy attorneys can help you understand how filing for bankruptcy can address your financial challenges.

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