The law states that most income must be reported, and is subject to federal (IRS) and Maryland state taxation. In addition, there are taxes that arise in connection with your home or real property holdings — property taxes and homeowners association fees. If you are unable to pay your income or property-related taxes, bankruptcy may not discharge all of the tax owed but can allow you to use the funds you previously spent on dischargeable debt to instead pay these nondischargeable taxes.

Income Taxes

Income tax debt can be discharged in bankruptcy, but only if it meets a number of stringent conditions. Yet other conditions apply to the discharge of interest and penalties on your original tax debt. If you are unable to pay any income tax debt remaining after bankruptcy, you may qualify for an IRS or Maryland state tax debt relief program. It is critical to discuss your specific circumstances with lawyer Donald L. Bell, who has the experience and expertise to recognize and resolve these very complex issues.

Property-Related Taxes

Because tax debt discharge applies only to income taxes, property-related taxes require special attention to assure that you do not lose your home. Addressing property-related taxes requires the skill and advocacy of a seasoned practitioner who will work to resolve all of your financial issues.

Free Consultations For Your Bankruptcy Needs

The Law Office of Donald L. Bell has handled thousands of situations involving income and property-related taxes, and uses this experience to provide you with a customized plan to take care of all of your debt-related issues. For the past 13 years, bankruptcy attorney Donald L. Bell has helped clients achieve financial peace and a fresh financial start.

Contact our Greenbelt, MD, office to schedule your free initial consultation regarding bankruptcy's effect on tax debt by calling 240-624-0748 or filling out this online contact form.

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