IRS Debt

Tax Debt Attorneys in Morristown

Resolving Tax Debt in Morris County and the Surrounding Area

Some types of debt (like student loans, alimony, and child support) are virtually untouchable through bankruptcy. Legal professionals often include tax debt in this category due to how complex and challenging it can be to discharge money you owe to the IRS. However, some situations allow you to include IRS debts in a bankruptcy filing. Before deciding how to tackle your back taxes, however, be sure to retain support from an attorney with years of experience in this area.

At Ast & Schmidt, P.C., our Morris County IRS debt lawyers have handled complicated tax debts for decades. We understand what the IRS needs to see before allowing you to pay less than what you owe. We also understand the level of stress you may be experiencing if the IRS is contacting you on a regular basis. As such, we offer free initial consultations, in which we can begin to evaluate your financial situation and discuss your debt relief options.

Would you like to learn more about how the nation's bankruptcy laws can help you in your time of need? Call (973) 363-2260 or contact us online to speak with our experienced tax debt lawyers in Morris County today.

Does Bankruptcy Clear Your IRS Debt?

Most tax debt cannot be wiped out in a bankruptcy. However, some tax debt does qualify for your bankruptcy discharge.

When deciding whether your IRS debt can be included in your bankruptcy, the court will consider:

  • The type of tax you owe
  • The age of your debt
  • The type of bankruptcy you filed
  • Whether or not you filed a tax return

Discharging Tax Debt in a Chapter 7 Bankruptcy

Chapter 11 and Chapter 13 bankruptcies involve debt restructuring. Therefore, Chapter 7 is generally the only option you may have to cancel debt you owe to the IRS.

In Chapter 7 bankruptcy, the court will only discharge your IRS debts if you meet the following conditions:

  • You filed legitimate tax returns for the tax years involved.
  • Your debt is income tax and not penalties for tax fraud or unpaid payroll tax.
  • The tax debt is 3 or more years old, and the IRS assessed the debt at least 240 days before you filed for bankruptcy.
  • You did not commit willful tax evasion or tax fraud.

Bankruptcy and Federal Tax Liens

If you have been contacted by the IRS about unpaid taxes and are considering your debt-relief options, you will need to act quickly, even if you meet all of the above conditions. This situation requires particular urgency because the IRS can place a lien against your home or other assets, and it will remain in place even if bankruptcy discharges the tax debt. Unlike other creditors, the IRS can do this without taking you to court first.

Finding the Right Solution
for You

If we assess your situation and determine that bankruptcy is your best option, we can guide you through every step of the process. Many people, however, will not be able to discharge tax debt through bankruptcy. If this is the case, you still have options. We may be able to help you file an Offer in Compromise, which could allow you to pay the IRS less than what you owe.

For fully personalized, high-powered legal support, call (973) 363-2260 to get in touch with our Morristown tax debt lawyers at Ast & Schmidt, P.C. today.

Filing Bankruptcy in Morristown?

Our team of bankruptcy attorneys at Ast & Schmidt, P.C. can take the right actions to help you achieve relief from crushing debt. We promise you, there is a light at the end of the tunnel.

Past Clients Tell Us Their Stories

  • “I have personally used Ast & Schmidt and have recommended them to friends and family members as well. Robert and Antoinette are always responsive, timely, and available to go over any questions or ...”

    - Rena Z.
  • “Throughout our experience with Ast & Schmidt, my husband and I were treated with the utmost respect and compassion. Whenever there was a question (even during COVID), Rob Schmidt was most accessible ...”

    - Iris G.
  • “Hiring this law firm was an excellent choice. Robert and Antoinette were just great. I would recommend them to whomever needs an attorney. They were responsive to my needs and were spot on with their ...”

    - Erin S.
  • “I had the pleasure of working with David Ast and his assistant Antoinette. The entire bankruptcy process was explained simply, and all shame was immediately removed. 100% recommended for any New ...”

    - Sarah F.
  • “They took care of me through both a bankruptcy and home sale. Smart, detailed, professional, as well as personable. What more could you look for? Highly recommended!”

    - Eric S.

What Sets Us Apart

How We Can Help You 
Move Forward
  • Personalized Services Tailored for You
  • Over 30 Years of Bankruptcy Experience
  • Free Initial Consultations
  • Available After Hours by Appointment
  • Direct Advice from Our Attorneys
  • Realistic Expectations Provided

Begin Your Fresh Start

Our team has over 30 years helping clients.  Let us help you.
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