It can come as a surprise when you notice how interested the bankruptcy courts and the trustee seems to be in your income tax situation. The interest mostly lies in the way that all government agencies are interconnected and share information. There are a few other reasons for the interest, however, so read on to learn more.
Do You Owe Uncle Sam?
Filing for chapter 7 – Tax debts can be crippling to those already in trouble with their finances.
While bankruptcy is truly a last resort, it can also be the light at the end of the tunnel that provides a path out of crippling debt. The effects of bankruptcy are harsh, but they can often be preferable to the overwhelming financial and psychological toll of long-term debt. Unfortunately, filing for bankruptcy is not necessary a simple process. One of the first steps is simply deciding whether to file for Chapter 13 or Chapter 7 bankruptcy, each of which has its own advantages, potential pitfalls, and path to recovery.
Whether you already know for sure you are going to meet with a lawyer to file for bankruptcy or even if you are simply considering it, there are many things you should avoid doing to keep your future self out of hot water. As with most legal matters, bankruptcy law is complicated and there are many rules you may not be aware of that you could inadvertently violate and make your case more challenging.
