Answers About Using Tax Debt Relief Services

Tax debts can be among the biggest sources of financial stress and strain for individuals. While this is a common type of debt for people to encounter, it is a reality that individuals may not always know what their options will be for finding relief from these debts.

Can You Discharge Tax Debts In Bankruptcy?

When individuals find themselves in serious financial trouble, it can be a common option for them to pursue a bankruptcy filing. This can offer debtors important protections, and it can even result in the eradication of many of these debts. Unfortunately, tax debt will typically be exempt from the bankruptcy protections that will cover most other types of debt. There can be situations where the debt may be discharged under bankruptcy protections, but this will generally involve special circumstances. Rather, individuals may need to hire a tax debt relief service that specializes in helping individuals to better manage their tax debts.

What Can A Tax Debt Relief Service Do For Your Situation?

Tax debt problems can be a common situation for individuals to face. Not surprisingly, there are programs in place that are designed to make it easier for individuals to afford to pay off these debts. This can be done through restructuring the debts or even partially forgiving parts of them. Lastly, it may be possible for these services to directly negotiate with the government to help reduce the total outstanding balance of your debts. This may allow for your monthly payments or even a lump payment offer to be lower and easier to manage.

How Much Will It Cost You To Use A Tax Debt Relief Service?

There are many individuals who may find that their tax debts are difficult to manage. However, they may not be sure as to how a tax debt relief service will charge them. There are a couple of different structures that these services will often use to charge their clients. For example, many of these services may only charge their clients based on a fraction of the total amount of debt that the service gets relieved. Others may charge a flat rate fee for their services. While the flat rate fee may seem more attractive at first, a performance-based structure may help incentivize your representative to more aggressively work to reduce your tax burden. Understanding these benefits can be useful as you are attempting to compare competing tax debt relief services that may be able to help your situation.

Contact a tax relief company for more information.