Legal Question in Bankruptcy in Arkansas
Owe back taxes... don't want to loose properties ???
My dad owes the IRS back taxes and has one medical bill totalling about $10,000. He has no other debt. He also owns 3 properties, free and clear. He is planning to file bankruptcy on the IRS and the medical bill, but does not want to loose the properties... is this possible? and what chapter should he file?
Also, from what he's been told... one can file bankruptcy on and IRS debt, with the exception of last two years... is this true?
Any information would be greatly appreciated. Thank you so much!
1 Answer from Attorneys
Re: Owe back taxes... don't want to loose properties ???
Losing the properties depends on what type property, whether it is his name alone, the value of the property, etc. There is a good chance that he cannot keep all 3 properties. By properties, I assume you mean real estate. Are these homes or businesses or undeveloped, or what?
The IRS tax situation is more complex than just the last 2 years. There are several things that extend the time - such as offers in compromise, time in installment programs, several others. Some of these extend the time not only for the time you were in them, but an additional time also. Whether bankruptcy can wipe out all taxes over 2 years is not completely accurate. It depends on when filed - such as on time or not. Was there an audit? It may be 3 years, depending on some more details. 3 years is more common. I would need to get a few more details to tell you whether bankruptcy would even get rid of the taxes. This is an area I work in so I would be glad to give you a free consultation to see if there is anything we could do to help your dad.
The type of bankruptcy to file depends mainly on whether you are trying to repay the debts and just need a longer time or whether you are trying to eliminate the debts altogether. Eliminating them altogether is more common, but there are some negatives, such as messing up your credit rating.
I would like to see if I could be of more help on this, but I need more information.
Related Questions & Answers
-
Reaffirmation what is reaffirmation and how does if affect a filed bankruptcy Asked 1/27/04, 7:07 pm in United States Arkansas Bankruptcy Law
-
How long between bankruptcies Somebody told me that you have to wait 7 years after... Asked 1/20/04, 11:59 am in United States Arkansas Bankruptcy Law
-
Credit card debt - don't want to loose home - which? Hi. I have some credit card... Asked 12/31/03, 5:47 pm in United States Arkansas Bankruptcy Law