La Grange Tax Debt Attorneys

i_random2As an Illinois firm that focuses on bankruptcy and related debt issues exclusively, our attorneys have worked with hundreds of clients, each of whom is in a unique financial situation and requires the individualized legal help that we provide. At the same time, many of our clients have common questions about planting the seed for a stronger financial future. We believe it is important to inform, encourage and empower our clients, so that they can view bankruptcy as a step forward, not backward.

Understanding Tax Issues Related To Bankruptcy And Other Forms Of Debt Relief

Bankruptcy has important advantages over voluntary debt relief, particularly when it comes to consumer debt such as credit cards and existing tax liability.

When we meet with our clients to discuss their situation, we explain that credit card and other consumer debt discharged in a bankruptcy proceeding is not taxable in nearly every case. By contrast, the forgiveness of debt by a creditor can result in taxable income and higher taxes. This is one reason that pursuing a Chapter 7 or Chapter 13 bankruptcy can be preferable to working out individual settlements with creditors.

Another reason why we often encourage our clients to pursue bankruptcy protection is the ability to discharge and/or reorganize income tax debts. Some income tax liabilities can be discharged in a bankruptcy proceeding, and by choosing the right form of bankruptcy, individuals can arrange long-term tax payment plans with the IRS.

People often end up with considerable tax debts when they take money out of a 401(k) or individual retirement account (IRA), but fail to account for the substantial tax penalties that can accrue as a result.

Even if you have significant tax debt, we believe it is important to provide perspective and, most of all, reassurance that we will find a way to achieve debt relief in a way that allows you to restore your financial health as quickly as possible. Too many people have the impression that the IRS is an all-powerful agency that “always wins.” In reality, the IRS is treated just like any other creditor during a bankruptcy, and we ensure that, just like any other creditor, they do not engage in any intimidating tactics once bankruptcy proceedings have begun.

Contact Experienced Joliet Nondischargeable Debt Lawyers Today

Plant the seed today for a fresh start tomorrow. By scheduling a free consultation with David P. Lloyd, Ltd., online or by telephone at 708-937-1264, you can work directly with a La Grange tax debt lawyer who understands how bankruptcy can unearth new potential.

There is no need to hesitate in getting information that addresses your unique needs. We look forward to hearing from you.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.