Chickamauga, GA Bankruptcy Law Firms & Lawyers

They make illegal threats, but can't throw you in jail. You could file bankruptcy. Was there insurance? Did the creditor get that? Bankruptcy will remove any further liability for you.

In the bankruptcy process your tax returns are verified. They will likely be first verified by your attorney. The Trustee may also require that you submit the last two years of tax returns so they can verify your income and see if there have been any major changes. Finally, the bankruptcy court, if they have reason to question your tax filings, could ask to see them as well. In other words, your tax returns will go through "the ringer" so it is important to make sure they are filled out accurately and filed completely. Terry Duncan Bankruptcy Law Firm in Charlotte, NC

The practical step is to contact the State. Let them know you are seeking a release of lien. Point out that the federal tax lien was released. However, the state does not have to release its lien in spite of the bankruptcy discharge of certain taxes or the federal lien release. It is unlikely that the state lien will be renewed. Consult an accountant if you need help to navigate the interaction with the state on the lien release.