Are taxes dischargeable?
Vallejo Bankruptcy Laywer
Working as a bankruptcy lawyer in Vallejo I handled cases where large tax debt was the main reason why people sought my advise. This applies often to business owners who have been hit hart by the downturn in this economy. Below are some general rules about whether you can get rid of your tax debt in a bankruptcy.
Generally income taxes are not dischargeable and have to be paid with or without bankruptcy unless the tax return was due more than three years ago and no income tax assessment has been issued by the IRS within the 240 days before filing of the bankruptcy petition.
If you owe a substantial amount in taxes it can make sense to file a chapter 13 bankruptcy. Since taxes are priority taxes they have to be paid in full during the period of the repayment plan and they may make up all or most of the repayment plan leaving little or nothing to pay back to credit card creditors.Consult with a bankruptcy lawyer on the specific rules for your situation.
We are Vallejo bankruptcy lawyers and serve the entire area of Solano County, Contra Costa County and Sacramento County.