Bankruptcy is never an easy or pleasant experience. Make sure you have all of your ducks lined up, to avoid any potential unforeseen tax implications.
Depending on the type (Chapter 7 or Chapter 13) of bankruptcy, the tax consequences can range from "no taxes owed" to "a payment plan for taxes". Simply filing for bankruptcy does not prevent the IRS from auditing you, or attempting to collect from you by placing liens or levies against your assets - so bankruptcy is not always the magic solution that it is advertised to be. It is important to get sound tax advice before you embark on the process of filing for and completing any bankruptcy proceedings.
If you are facing the unfortunate prospect of bankruptcy, contact us as soon as possible so we can plan on avoiding surprises and getting you the best tax advantage possible.
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