Are you struggling financially? Are you afraid of going to jail because you owe the IRS thousands of dollars and are unable to pay them? If so you are not alone. Approximately 8.2 million Americans owe more than $83 billion dollars in back taxes, interest and penalties. As the economy continues to decline these numbers are expected to rise over the next few years. Many individuals are worried that the IRS will seize their home or other property and put them in jail. If you find yourself in this situation it would benefit you to call an attorney. A Minnesota bankruptcy lawyer can work with your accountant to find a solution to your financial dilemma. Dealing with the IRS can be difficult. The Internal Revenue Officer may not agree to a reasonable payment plan. For this reason, a person or business who owes the IRS a huge amount of money may want to consider filing bankruptcy. Your accountant will work closely with your attorney to weigh your options, decide which bankruptcy is most suitable and help you eliminate IRS debt while salvaging as many resources as possible. Under a chapter 7 and 11 bankruptcy it is possible to have IRS debt completely discharged. A chapter 13 bankruptcy would set up a more favorable payment plan for the debtor allowing them ample time to repay the debt. The Minnesota bankruptcy attorney may decide to file a chapter 11 bankruptcy. The attorney and accountant would work together to create a bankruptcy estate. All assets and liabilities would be transferred to the estate. This is done to separate the taxable entity from the bankrupt individual. The estate would then have separate tax return from the debtor. The debtor can then keep personal assets that are considered exempt and separate from the estate.If you are a business owner or individual facing IRS bankruptcy, make sure to gather all your records and be completely honest with your personal account and attorney. Filing bankruptcy can seem confusing at times; that’s why it’s extremely important to contact an attorney who deals solely in bankruptcy. The attorney and your personal accountant will work together to find a solution to your financial worries and help you get your life back on track.
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