Acclaimed Bankruptcy Attorney, Charles Daff, Examines Bankruptcy and Tax Debt

By Charles Daff

LOS ANGELES, CA, UNITED STATES, Sep 4, 2020 / – Bankruptcy – Bankruptcy and Tax Liability:

Most tax debts cannot go bankrupt, and you still have to pay the IRS when you file for bankruptcy.

The bankruptcy declaration can provide a sense of financial relief to those drowning in debt. However, if tax is part of your debt, you may not get the relief you are looking for. Even so, bankruptcy could put an end to the harassment by IRS.

Tax liability and automatic residence:

If you have overdue taxes, the IRS will begin their collection efforts with a notification. Then every three months they send an additional letter that is more serious than the last. After a few months these letters will become legal notices. Some of these notices may involve tipping, confiscating accounts and funds, and even garnishing wages. When filing for bankruptcy, enter an automatic stay. Auto stay is essentially a pause button for threats and harassment from creditors, including the IRS, who you contact regarding your overdue payments.

Pay tax debt:

As mentioned earlier, most overdue taxes are non-refundable. For most, you will still owe taxes at the end of your Chapter 7 bankruptcy proceedings. Chapter 13 bankruptcy is fully repaid in your repayment schedule. However, as with most rules, there are exceptions to the settlement of tax debts. If you need to fire it, Chapter 7 bankruptcy is your only option.

Tax liability and Chapter 7 bankruptcy:

If each of the following applies and you qualify for Chapter 7 bankruptcy, you can pay tax debts:

Overdue Taxes and Income Taxes – If your overdue taxes are wage taxes or fraud penalties, these cannot be paid.

Fraud Was Not Committed or Willfully Avoided – If you committed bankruptcy fraud or intentionally evaded taxes, you will not be able to pay any tax debt.
Your Debt Is Three Years Or Older – If your debts are less than three years old, your debts cannot be paid.
A tax return has been filed – If a tax return has not been filed, your tax liability cannot be paid.
They Pass the 240 Day Rule – If the IRS hasn't assessed your debt 240 days or more prior to filing, your debts cannot be paid.

Tax liability and Chapter 13 bankruptcy:

In most Chapter 13 bankruptcy cases, debts cannot be paid. Instead, as mentioned earlier, you will pay back your taxes over a three or five year period during your repayment schedule.

Contact Charles W. Daff, bankruptcy attorney:

If you are in tax debt and want to file for bankruptcy, you need an experienced and creative lawyer by your side. With nearly 40 years of experience in bankruptcy law, Charles W. Daff, bankruptcy attorney, can help you get the stress out of your finances. If you are in the Orange County, California area and need a qualified and professional bankruptcy attorney, contact the bankruptcy help experts today to schedule your free consultation.


Charles Daff


College of Law in June 1977 with a Juris Doctorate. He graduated from California State University at Fullerton in June 1974 with a B.A. Degree in political science. Charles W. Daff has lived in Orange County, California since 1970, where he attended college, attended law school, and currently maintains his legal practice. Charles W. Daff was admitted to the California bar in December 1977. He is admitted in all state courts in the state of California and in all district courts of the United States in California. In September 1987, he was appointed to the Chapter 7 Board of Trustees by the United States Trustee's Office, Orange County Office, and currently serves as the Chapter 7 Panel Trustee in the Riverside Division of the court. He is a member of the State Bar of California, the Orange County Bar Association (and its Commerce and Bankruptcy Divisions), the National Association of Consumer Bankruptcy Attorneys, the Orange County Bankruptcy Forum, the Inland Empire Bankruptcy Forum, and the American Bankruptcy Institute, and the National Association of Bankruptcy Administrators. He was named a Super Lawyer, an award given to the top 5% of Southern California lawyers.

Charles W. Daff has been a bankruptcy law specialist for private and small businesses since February 1995, certified by the California Board of Legal Specialization of the State Bar of California. Charles W. Daff served on the Advisory Board to the Bankruptcy Specialists' Commission for Private and Small Businesses of the State Bar of California and served on the Advisory Board from September 1999 to September 2002 and from September 2007 to September 2010.

He speaks on bankruptcy issues for a variety of groups and organizations including the National Business Institute, Orange County Bankruptcy Forum, Inland Empire Bankruptcy Form, and the Orange County Bar Association. Attorney Charles W. Daff assists clients with debt relief, bankruptcy, Chapter 7, Chapter 11, Chapter 13, foreclosure, garnished wages, and redemptions in Santa Ana, California, Irvine, Orange, Garden Grove, Tustin, Anaheim, Fountain Valley, Villa Park, Fullerton, Atwoord, Costa Mesa, Midway City, Westminster, Stanton. Placentia, Newport Beach, and Yorba Linda in Orange County, Los Angeles County, Riverside County, and San Bernadino Counties.

Aurora DeRose
Boundless Media Inc.
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September 04, 2020 at 5:32 pm GMT

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