Q: should i take care of irs debt before filing for bankruptcy?
I want to file for bankruptcy. I think i was a victim of a scam. I have not filed my taxes for 2020 and 2021 and know that I owe $140K for 2020 and will owe for 2021 and 2022. I wont be able to pay those in my lifetime. I took out loans and a lot of my retirement funds in 2020 and 2021 with a scam. I am currently a nurse travelling to make debt payments I have accumulated and am barely able to make that amount. I want to settle down and take a permanent position but that will bring me less pay to maintain paying my monthly debt. I am considering getting tax relief services before beginning bankruptcy process in order to bring my tax debt to nothing or a fraction of what I owe. Is that a good idea or should I just go forward with bankruptcy process?
You should go see a good bankruptcy lawyer because you sound like a candidate for relief. On a board like this individualized advice is impossible.
When you go to the lawyer be prepared to complete a questionnaire that will list all your assets and all debts. Your best tax relief can come in your bankruptcy because it sounds as though Chapter 13 (which treats IRS debt) may be optimum for you. The best the tax relief outfit can probably do is arrange a payment plan, which can occur in bankruptcy.
Good luck and go sooner rather than later!
Timothy Denison agrees with this answer
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