Often taxpayers that were debtors in a dismissed or discharged bankruptcy will continue to have tax problems after bankruptcy. Frequently the debtor is unaware the Internal Revenue Service and other taxing authorities claims have not been discharged and are ready to collect the remaining liabilities. Representation of these taxpayers is different than other taxpayers and often quite challenging.

One of the common problems encountered in bankruptcy practice is the timing of filing of a bankruptcy petition when the main problems are tax oriented. When large tax debts are the main problem of the debtor, delay in filing can be catastrophic. Conversely, rushing to file can be equally catastrophic.

Chapter 11 can produce a better result for some individual debtors than Chapter 13.The first step in the filing of a bankruptcy is to choose the chapter of bankruptcy to file. Careful analysis by a competent attorney can produce a more optimal result for the debtor.

The Internal Revenue Service is the largest collection agency I know of. Tax collectors, called Revenue Officers, are the tax debtors’ nightmare. I rarely have had a client that has not filed tax returns or owes tax monies to the IRS who is not expecting a phone call from the IRS. Anticipation is often worse than the reality.

Finding professional debt relief solutions is important in order to ensure your interests are fully protected and you get the highest level of protection for your assets and financial future. Having an attorney who specializes in debt settlement will put someone squarely in your corner to navigate the seemingly endless labyrinth of collection agencies and creditors, bankruptcy and tax laws, and the threat of late fees and ever accruing penalties.