True Or False … Bankruptcy Will Not Discharge Federal Income Taxes?
No! Not true.
Filing Bankruptcy can discharge personal income tax liability if:
• It is for personal income tax.
• You did not commit fraud.
• The tax is due for a tax year that more than 3 years old.
• You did file the tax return at least 2 years before filing bankruptcy.
• The income tax debt has been assessed by the IRS at least 240 days before filing bankruptcy.
All My Friends, Family & Employer Will Know I Filed Bankruptcy
While Bankruptcies, like most court proceedings, are a public record, I have not had one occasion in more than 26 years where a client’s family, friends or employer learned of the bankruptcy, other than from the client.
I will Never Be Able To Own A Home Again
No! Not true.
Filing Bankruptcy does not deny your right to own a home or any property. Yes, obtaining financing will initially be an issue, but there are ways to improve your credit score and faster than you think. In the last 26 years I have represented countless people through the bankruptcy process who did refinance their home or purchased a new home, sometimes within a couple of years. Not only are there loan programs that will finance real estate within two years of bankruptcy, but these loans are at market rates, currently as low as 4% – 4 1/2%. After 3 years of not owning a home, you could also qualify for a “First Time Homebuyer Mortgage”. Yes, even if you previously owned real estate more than 3 years ago. You will need to have sufficient income to support a mortgage and manage your finances properly after filing bankruptcy, but you are not alone.
We can help provide budgeting, financial guidance and other recommendations to begin your new and better financial future. A better quality of life for you and your family.
Contact Bellenot & Boufford, LLC For More Information On How Bankruptcy Can Improve The Quality Of Your Family’s Life.
Serving Danbury, Connecticut and all of Fairfield and New Haven Counties.