The Hidden Dangers Of Using A Tax Bankruptcy Attorney To Wipe Your Debt

If you find yourself with a mountain of back taxes owing, it may be tempting to try and eliminate them after three years by filing bankruptcy. The IRS doesn’t make this easy and there are numerous pitfalls, including the requirement to have filed tax returns two years prior to taking this step. Also, if your debts aren’t discharged in bankruptcy court, you may be in a worse situation than when you started. The IRS has 10 years in total to claim tax debts from you, including any hiatus while filing bankruptcy. They can come after for the debts, penalties and interest for the whole period. They are also given an extra 180 days to pursue you in this scenario, for good measure.

Finding an Attorney

If you want to go down this route, it’s therefore crucial that you know what you are doing and are properly advised by a specialist. Tax bankruptcy attorneys don’t come cheap, but a good one can advise you about all the necessary documentation and paperwork you need to support your case and will know local court rules and procedures.

Experience

Most bar association websites offer lawyer referral services and some bankruptcy courts will have a list of lawyers practicing in your area. It’s important to meet with your prospective lawyer before committing. See if you are comfortable with them, check that they are specialist and experienced in this area and ask for references if possible. If certified by the American Board of Certification even better, although few are. You will get a more personal service at smaller firms, but the lawyers at larger ones may be more experienced (and more expensive).

Fees

Lawyers will normally be paid on an hourly rate and you will need to find out what this rate will be, their estimate of overall costs and how and when any changes will be notified to you.