Comprehensive Tax & Legal Solutions

When unpaid tax debts are just too much to handle

On Behalf of | Apr 15, 2016 | Tax Law

For many people in Toledo and throughout Ohio dealing with back taxes, fighting with the IRS and creditors can be incredibly frustrating. You may owe a significant tax debt and feel as if you’ll never be able to pay it back. The good news is that there are protections in place to help you get out of debt and start over.

At Mockensturm Limited, we help people in Ohio and throughout the country understand their options when it comes to dealing with the IRS, finding solutions to tax problems and in some cases, achieving relief through bankruptcy protection.

But Won’t Bankruptcy Just Make Things Worse For Me?

At our firm, we are an accomplished team of attorneys and CPAs. With years of experience helping people with all types of tax and debt issues, we have heard and seen it all. We understand that many people have concerns about dealing with the IRS or filing for bankruptcy. Many struggling to deal with significant tax burdens and other debts are scared away from learning more about bankruptcy because of the myths they have heard.

Some of the common myths and misconceptions we try to debunk include:

Bankruptcy will just ruin my credit further: The truth is, if you’re considering filing for bankruptcy, your credit is probably already in some serious trouble. In most cases, bankruptcy is the first step toward repairing your credit. You will likely see signs of improvement in a year or two after filing.

I’ll lose everything I own if I file for bankruptcy: When people hear about certain types of bankruptcy filings (like Chapter 7), they assume that their assets will be liquidated. However, there are numerous exemptions available that allow debtors to retain their property. In many cases, debtors retain nearly all their possessions.

Isn’t bankruptcy cheating the system?: For those struggling with debt, interest, and fees, these charges quickly pile up. Even if you chip away at your debts, you probably can’t keep up with the interest. Bankruptcy doesn’t allow a debtor to slip away from creditors. Instead, bankruptcy protections give debtors the breathing room they need to pay back what is fair.

Bankruptcy is a form of punishment: This is a gross misconception. Bankruptcy isn’t meant to be a punishment. Rather, it’s a tool to help people get out of debt. By offering protection from creditors, helping to reorganize and developing a plan for repaying or discharging debts, bankruptcy can be a big help to people who have struggled under a heavy debt burden for far too long.

The Experience And Resources To Solve Your Tax Problems

We are one of only a few firms in the region with the experience and skill to handle complex tax and debt-related issues. At Mockensturm Limited, we know how to solve complex debt and bankruptcy matters because it’s what we do every day. More than just attorneys and CPAs, we are problem solvers. If you have questions about bankruptcy, dealing with tax debts and other related issues, we are here to help.