When You are Unable to Pay off Your Taxes
Spring is a nice and enjoyable season, but when you remember it is tax time, the merriment does not hang around for long. It evokes immense tension for those who are liable for a large tax bill. Be cautious if you can’t afford to make payment on your taxes as the IRS can hit you with an increased interest rate as a late penalty.
As it is a financial matter, it is better not to take any risks and go with the advice of a professional. If you are living in OKC, you have the benefit of many debt consolidation attorneys to help you with your particular situation.
Learn about your available options for unpaid taxes:
You can take out a personal loan or credit card to pay off the amount owed. You may think twice about this option as you are going to borrow again to pay another due amount. But there are options of low-interest credits and it is less than what the IRS charges as a consequence of missing your tax payments.
Ask the IRS for a monthly payment plan to pay off the debt in installments. The plans can be for either a short and long tenure, depending on your needs. Short-term ones do not need an application, but longer plans do. While these plans may make be less stressful, you won’t be saving yourself from penalties and interest. There can be some additional fees as well. You should consult the debt consolidation attorneys in OKC for more details about this option.
The last but not least option, is filing for bankruptcy. Filing for bankruptcy can’t get you rid of your IRS debts, but it can free you from your other debts you may have. This allows you to invest the money that remains into repaying your tax obligations. There are two types of bankruptcy – Chapter 7 and Chapter 13. The first one discharges unsecured debts and you can start over in four months. The latter recognizes your debts and allows you to pay an installment every month to get rid of debts in three to five years.
There are more options but the complexity of your case is a factor here. You can visit our expert debt consolidation attorneys in OKC and get useful suggestions to handle the situation. We are Chris Mudd and Associations, a group of proficient and reliable lawyers you can rely on.
** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.