$50,000 in Back Taxes ¦ $124,000 in Defaulted SBA Loan ¦ Should He File Bankruptcy¿

Hey everybody, I'm Logan Allec, my own choice tax relief. We help folks who have back tax debt, unfiled tax returns, big tax problems We're there to help Today, I'm answering a question from an owner-operator of a trucking company who is in deep financial trouble right now He took out an SBA loan That is currently in default for $124,000 and he hasn't filed tax returns for a few years Let's let's look at his question here on my screen JackknifeTV. Here's one for you I haven't filed a tax return since the pandemic Unfortunately, my tax lady literally went into total COVID mode between 2021 and 2022 As of right now, I owe I would imagine at least $50,000 or more in taxes Plus I have an SBA loan that is in default right now for $124,000 My entire business is basically crumbled since COVID. I am now basically an owner-operator Of a trucking company leasing a truck from a predatory leasing company barely able to scrape by I have no idea what to do or whether I can even file For chapter 7 my business is set up as an LLC, which I don't know if that helps or not I don't know if I'm actually asking for help here But more or less venting and I'm extremely scared for my family and whether or not I can take care of them. So Let's get into this. Let's talk about the LLC thing first and foremost. I'm assuming jackknife. This is a single-member LLC If you had filed tax returns for this LLC's income you'd report the income just directly on your Individual Schedule C and this would be a personal income tax liability the good news is that Personal income tax can be discharged in a chapter 7 bankruptcy However, if you've seen well if you have watched the video that you commented on does bankruptcy clear tax debt You would know and you probably know this but you have to file the tax return one of the requirements for Taxes to be discharged in bankruptcy is for the the tax return to which those taxes relate must have been filed at least two years Before you file for bankruptcy and another rule is that the actual tax returns Must have been due at least three years Before you filed for bankruptcy so If you were to go out and file chapter 7 this year, you know, unfortunately this this tax debt from 2020 Well, let's back up in order to even file bankruptcy or bankruptcy attorneys gonna tell you you got to get caught up with your taxes right, so you're gonna have to file these tax years anyway before you can even file for bankruptcy and Bankruptcy might be the answer For this SBA loan. I'm not a bankruptcy attorney, but it's my understanding that SBA loans are generally discharged dischargeable in bankruptcy. You may have some other Unsecured debt that you've racked up credit card debt. You know, I don't know beyond the scope of what you put here The consultation with a bankruptcy attorney would be a great idea for you But one thing you have to keep in mind is that your bankruptcy attorneys is gonna tell you hey You're gonna have to file all your tech. You're gonna have to get caught up on your tax returns, right? So you have to file 21 and 22 the years you didn't file bad news is because The 2021 2022 taxes that you will hopefully file here in the near future Will not survive the bankruptcy a because they were not filed at least two years before you file the bankruptcy petition right assuming you file for chapter 7 this year and B because they were not due at least three years before you file the bankruptcy petition again Assuming they file the bankruptcy petition this year. These taxes will survive the chapter 7 bankruptcy that said Many folks who qualify for a chapter 7 bank, not all okay, because there are some exclusions that the bankruptcy code provides to folks that is not the case when they're dealing with administrative relief from the IRS, but Oftentimes folks who qualify for chapter 7 bankruptcy Will after after the bankruptcy is done Will qualify for some kind of hardship based administrative relief from the IRS right for the taxes Like let's say it's $50,000 here that you estimate right for the taxes that survive the bankruptcy. Okay, so I would say First and this is not a tax or legal advice This is just kind of off-the-cuff thing here based on what you said someone in your situation It'd be wiser than consult with the bankruptcy attorney in your state and then after The bankruptcy the chapter 7 is done chapter 7 are usually pretty quick after the chapter 7 is done You've hopefully had discharged a lot of this other unsecured non tax debt like this SBA loan, hopefully Then give us a call at choice tax relief 866 8000 tax or fill out the form on our website choice tax relief comm so we can discuss options with you and That's that's basically what I'd say your situation is not uncommon jackknife, you know, so many business owners Got you know, I've seen their businesses fold in the past few years And they've gotten scared and they haven't filed taxes and they have all this other debt but between you know a bankruptcy attorney and and CPAs and attorneys who specialize in tax relief like we have here at choice tax relief We can help get you back on your feet again I have other tax relief videos here on the left-hand side of your screen if what I'm talking about Interests you or it seems applicable to your situation. Please check out other videos here You can also reach out to us at choice tax relief 866 8000 tax or visit us choice tax relief comm fill out the form We'll reach out to you. Alright folks. Thanks so much for watching. I'll see the next video. Bye