When Do You Need a Collection Attorney?

The vast majority of people may owe a tax debt at some time in their lives. However, many people believe that they can wait until hiring an attorney to assist them with this matter. Unfortunately, this belief can lead to severe consequences for those who become delinquent on their tax debt.

New York collection attorneys will be able to help you pursue any number of remedies, including negotiating payment schedules and bankruptcy filings, which could save you from having your wages garnished or having assets seized by the IRS.

When should you hire a debt collection attorney?

If you learn that your employer is garnishing your wages to pay off a tax debt:

If you know that your employer is garnishing your wages to pay off a tax debt, file for bankruptcy as soon as possible. You should protect yourself and your assets from garnishment proceedings. If you wait too long and the IRS garnishes your wages, you could lose a substantial amount of money.

If you owe the IRS more than $10,000:

You must hire a collection attorney as soon as possible if you owe more than $10,000 in taxes because the IRS will rarely accept offers of payment of less than 10% of what is owed. Even small amounts of money, up to $1,000, could make a big difference.

If you realize that you may not be able to pay the taxes due on time:

If you realize that you may not pay the taxes due on time, contact your collection attorney immediately. Even if you cannot pay the total amount owed, your attorney can negotiate payment plans with the IRS so that you will not have to incur interest or penalties. However, it is essential to note that interest will continue to accrue on your accounts until it is paid in total, so you must keep up with payments throughout this process.

If you have been placed in a wage garnishment:

If for whatever reason, you have been placed in wage garnishment, you must contact an attorney promptly. Your attorney can negotiate anything from interest-free payments to the amount that the IRS will accept in place of your wage. In addition, your collection attorney will be able to help you in filing a petition in bankruptcy to avoid having any assets seized by the Federal Government.

You must hire a collection attorney as soon as you learn that you need representation. If you for a more extended period to start this process, you could end up with your assets seized by the government.