Bankruptcy and Taxes in Florida

Few debts can cause more stress, worry, and frustration than those owed to the government. It

is common for Florida residents with financial challenges to fall behind on tax payments. In their

attempt to collect on back taxes, state and federal governments may garnish wage, place liens

on your property, and even have bank levies placed on your accounts.

Government bodies have significant power to collect what they believed is owed. However, you

are not defenseless in these times. Bankruptcy protection exists to help residents facing any

number of debts. If you owe taxes that you cannot afford to pay, please contact the bankruptcy

professionals at Dolaghan Law today to learn more about your legal options.

Tax Debt Discharge in Bankruptcy

Rules governing the discharge of tax debt are quite complex. In most cases, you cannot

discharge debt that came due within the last three years. However, older back taxes may be

discharged if you filed returned for those years. Because of the complexity of this issue, it is

critical to speak with a bankruptcy lawyer to learn how the law might apply to your specific


Tax Debt Repayment in Bankruptcy

Even if your tax debt cannot be discharged in bankruptcy, there may still be benefits to filing

for bankruptcy to help provide a more reasonable path to repay the debt owed. For example,

if you file Chapter 13 bankruptcy, you may be able to repay the tax obligations over a three

to five year period without penalty while balancing any other financial obligations your have.

Every case is different, but you may also be able to use this approach to pay back taxes without

accruing all of the penalties or interest that would otherwise apply. This can ultimately save you

tens of thousands of dollars and provide the best chance for a fresh financial start.

The Benefit of an Automatic Stay

One immediate benefit to filing for bankruptcy is that an automatic stay on collection activity

goes into effect as soon as the petition is filed. This is an injunction that prevents creditors from

their collection activities, and is therefore important for all those who are facing a tax lien, wage

garnishment, or possible property repossession.

The automatic stay lasts as long as the details of your bankruptcy are sorted out—either with

debt discharge or the creation of a repayment plan. In all cases, however, the injunction can

help by pausing all activities so that you have breathing room to craft a plan for a more sound

financial future.

Contact a Florida Bankruptcy Lawyer Today

It is critical to act fast when facing financing challenges. To learn more about how bankruptcy

may help you handle tax burdens or other debt, please contact a legal professional as soon as

possible. Those in Jacksonville, Daytona, and in other Florida communities can reach out to the

experienced experienced bankruptcy team at Dolaghan Law today. Please call us at 904-354-


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