Monday, April 20, 2015
Sacramento Tax Attorneys Understand Bankruptcy and Tax Debt
Many people are confused about the specific debts that bankruptcy relieves. If a Sacramento tax attorney is required, it’s important to understand bankruptcy as it applies to tax debt relief. There are several ways to file bankruptcy, and in most cases filing will not relieve tax debt. However, there is information that should be known. In some cases, a bankruptcy can relieve your tax debt, but often not in full, and generally they still might be able to collect at a later date. TheBankruptcySite.Org explains: The moment you file a consumer bankruptcy, a mechanism called the “automatic stay,” or auto-stay, stalls most legal proceedings and prohibits your creditors from continuing collection efforts. This means creditors can’t sue, garnish, bill, or call you, or otherwise attempt to collect a debt you owe. The auto-stay applies to the IRS as well.