Tax liens can be difficult or impossible to remove through a Colorado bankruptcy filing. It is typically easier to discharge tax debt before such debt is secured by a lien. Once a lien is filed, it can be much more difficult.
Colorado Springs Bankruptcy Attorney Stephen H. Swift is dedicated to using bankruptcy laws to protect consumers against predatory lending, astronomical medical bills, tax debt and other financial challenges. Those dealing with the Internal Revenue Service should consult an experienced attorney at the earliest possible stage of such cases.
The difficulty in removing tax liens – combined with strict time frames when discharging tax debt – makes the early advice of experienced legal counsel all the more critical. Once a bankruptcy is filed, all creditors – including the IRS – are prohibited from taking collection action against you.
Taxes, the IRS and Bankruptcy in Colorado Springs
Tax debt can be one of the more difficult types of debt to discharge through bankruptcy. But one universal truth holds: Filing for bankruptcy puts you back in charge of your financial future and provides you and your attorney time to address your financial issues.
- Once a tax lien is secured, it can remain in place – even after a bankruptcy in which the underlying tax debt was discharged.
- Filing for bankruptcy can stop the IRS from filing a lien.
- An experienced bankruptcy lawyer in Colorado Springs can negotiate with the IRS, and/or help formulate a payment plan.
- Discharging other debts will leave you with more resources to payoff the IRS in the event tax debt cannot be discharged.
- Filing for Chapter 13 bankruptcy in Colorado Springs can permit you to make payments interest and penalty free.
Again, dealing proactively with such debt is critical. A tax lien can include interest and penalties, which can quickly result in a tax bill that is out of control. Such liens can attach to all property, including real estate, and can show up on your credit report. A lien ensures the IRS has a legal claim on the property, which cannot be sold or disposed without payment to the IRS.
When dealing with the IRS, it’s also important that you are issued a Certificate of Release of Federal Tax Lien after bankruptcy discharge. In all cases, consulting an experienced attorney is critical when it comes to protecting your rights in dealing with the Internal Revenue Service. If not handled properly, a tax levy may result, which means the IRS can seize your property to satisfy tax liability. This can include checking and savings accounts, investments, inheritance, insurance policies and even social security benefits. This happens when a tax lien is not properly addressed.
A Colorado Springs bankruptcy lawyer can assist you in determining the best course of action for your individual case. The Law Offices of Stephen H. Swift is here to aid consumers in the bankruptcy process.Serving clients in in Colorado Springs, Pueblo, Denver and the surrounding area.
Colorado Springs bankruptcy – 866-893-2440 or 719-520-0164 – legal consultation
