When people are struggling to make ends meet, pay bills and avoid foreclosure on their home, it can make it very difficult to meet all the other financial obligations that may not be seem as imminent. In many cases, this can include making income tax payments. Laws that govern income tax debt can be very confusing, as there are a number of factors that determine which of these debts, if any, can be discharged.
Often times, the age of income tax debt can be crucial. It is also important to determine whether the taxes are related to business or personal matters. Depending on these, and many other factors, it may be possible for a person in New Jersey to have income tax discharged by filing for Chapter 7 bankruptcy.
Income tax debts are a main source of the debt that former supermodel and controversial character Janice Dickinson has reportedly been struggling with. Dickinson has recently filed for bankruptcy in order to deal with the debt that has piled up due to taxes, medical bills and other expenses.
According to sources, the 58-year-old woman owed the Internal Revenue Service over $500,000 for more than 10 years of unpaid taxes. She also has a $43,000 tax lien and an eviction lawsuit for unpaid rent to worry about. Adding to Dickinson’s financial woes are unpaid bills totaling $16,000 for dermatology and anti-aging medical procedures.
Every person who is struggling with finances and is searching for a way to deal with their debt is dealing with different situations. While Dickinson’s debt consists mainly of unpaid taxes and cosmetic medical procedures, other people have credit card bills, mortgages and student loans to worry about. Because every situation is different, the same debt relief plan that works for one person may not be appropriate for another person with different circumstances. Working with a debt relief attorney can help each person figure out which may be the best route to take in order to make a fresh financial start.
Source: Los Angeles Times, “Former supermodel Janice Dickinson files for bankruptcy,” Nardine Saad, April 23, 2013
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