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Bankruptcy should be the last avenue considered. By bankruptcy, you acknowledge owing the full amounts owed at the time of bankruptcy, whether you filed appeals or not. Even assuming that you are eligible for bankruptcy, the tax authorities have a variety of tools to get around the bankruptcy and get paid and may stop your discharge for quite a while:

Liability of third parties for any transfer under fair market value will apply. Any donation at any time will incur the liability of the beneficiary of the donation, even after you after being discharged from bankruptcy. Generally, a bankruptcy will point the interest of the tax authorities to your spouse and family.

A statement of offense: Bankruptcy does not prevent a statement of offense from being sent to you for amounts that are similar to, or greater than, the amounts subject to bankruptcy. A bankruptcy, without contestation of the sums paid, will in fact constitute a form of admission of the sums claimed which could harm a criminal case.

Harassment of your future business partners or employers: Tax authorities may invalidate the tax numbers of companies in which you will work in the future under certain conditions.

These questions generally deserve a meeting with us before mandating a trustee in bankruptcy.

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BANKRUPTCY

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