Are There Any Benefits of Filing Business Bankruptcy?

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There are many benefits of filing business bankruptcy. A few include: Asset Protection. Once your bankruptcy petition is filed, your creditors are prohibited from contacting you and must halt all collection efforts. Your assets are protected from seizure, and business equipment and vehicles cannot be repossessed. Debt Reorganization.. You can reorganize your business debts, present a more feasible repayment plan to your creditors, and bring your accounts current over time. This solution is ideal for small and large corporations that are in serious financial trouble. Stress Relief. Imagine being able to operate your business in peace, without debt collectors nagging …

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Can I Use Bankruptcy to Discharge Tax Debts?

File bankruptcy to settle your tax debts

While some tax debts can be discharged through bankruptcy liquidation, there are exceptions. Section 523 of the Bankruptcy Code identifies three debts you must repay: 1. Unfiled tax returns. If you did not file a tax return for the year the debt is assessed, you cannot obtain a discharge. If you filed late tax returns, you must wait two years before you can seek a discharge. 2. Priority tax claims. If the tax debt is a Section 507 priority claim, it cannot be discharged in bankruptcy. Priority claims must be paid in full. They include: A tax required to be …

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What Type of Bankruptcy Is Best For Tax Debts?

satisfy tax debts with bankruptcy

Chapter 13 is the go-to bankruptcy for taxpayers who owe IRS debts that cannot be discharged in chapter 7. But before you file that petition, you should know: All priority debts must be paid in full. They cannot be reduced or discharged in bankruptcy. Not sure if your debt gets priority status? Read our article Tax Debts you Cannot Discharge in Bankruptcy. If your debts are not priority, you may have options: You can repay them through a chapter 13 plan or an IRS installment agreement. If paid through chapter 13, you will save money as you won’t pay any interest or …

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Can All Debts Be Discharged in Bankruptcy?

FAQ Personal and Corporate Bankruptcy

In bankruptcy, a discharge is a term used to describe a debt that doesn’t have to be repaid. But not all debts are dischargeable. Those that are include: business loans, unpaid rent and credit card expenses. Debts that cannot be discharged include: some taxes, salaries owed to employees, penalties and fines that have been imposed on the company by the government. It’s also important to note that personal expenses cannot be discharged in a business bankruptcy; only debts incurred on behalf of your company. More Questions about Bankruptcy? We have answers! Contact our bankruptcy team to discuss all options available …

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