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Please get rid of my old tax debt!

Question: Please get rid of my old tax debt! I have a ton of IRS debt. The IRS is now garnishing my paycheck for the back taxes I owe; they’re taking it right out of my paycheck. I definitely owe some taxes, but the IRS says I owe like $50,000. That’s a lot of money for me and I really can’t afford to pay it back any time soon. I want to know if I can use bankruptcy to get rid of tax debt so I don’t have to pay it back and I don’t get garnished.

I got into tax trouble about seven years ago when I had my own business. I was making money and the business was doing well but I admit I didn’t calculate my taxes correctly. I should have used the money I was making to pay my taxes but instead I used it to try and grow the business, which actually worked, at least for a while. The business grew and I opened stores in Alpharetta, Woodstock, Dunwoody, Sandy Springs, and in Atlanta.

But I grew the business too quickly and I got into too much debt with the banks and I started using my credit cards for everything. So I racked-up some high credit cards bills. But I can pay those back; it’ll take some time, but I can pay those back.

It’s the tax debt that I really need help with. I closed the business and I now work for a friend of mine selling classic car sales. I sell old Mustangs, Camaros, Corvettes, and some foreign cars, like BMW and Mercedes. All the cars are over 25 years old and they can be expensive, particularly when they’re in good condition. I’ve sold some thru the Barrett-Jackson auction.

Now I really need a Roswell bankruptcy lawyer to give me advice on what to do about my tax situation and to help me stop the IRS’ garnishment of my check as soon as possible.

K.B. in Roswell, GA

Answer: Tax debt can be eliminated in bankruptcy either through a chapter 7 or a chapter 13 filing. To be eliminated, however, the tax debt must be over three years old. If the tax debt is not over three years old, the bankruptcy code will not allow it to be discharged in a filing.

Many Americans suffer from tax debt. And that debt load can be huge. It is actually very easy to get into tax trouble. Many people do not calculate their tax liability accurately because taxes are often difficult to figure out. Many people don’t withhold from their paychecks the proper amount for taxes and end up owing the IRS money. Still other people don’t pay the right amount of taxes because they just use the money for other reasons.

And the Internal Revenue Service can be very aggressive at collecting what is owed. They won't hesitate to garnish your wages.

Please call us so we can discuss your situation and how best to address your tax issue.

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