There are two types of bankruptcies that individuals most commonly file: Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, you are appointed a bankruptcy trustee who will gather and sell your assets to pay off your secured debts. The remaining unsecured debts are discharged. In a Chapter 13 bankruptcy, instead of having most of your debt discharged, you develop a repayment plan that you can afford. Under the repayment plan, you will pay off your debts within 3-5 years.
Per the U.S. Bankruptcy Code, you may be able to discharge some of your taxes, as long as you meet all the following criteria:
You are unable to discharge:
If you are considering filing for bankruptcy to eliminate your tax debt, you may want to speak to a tax attorney first. The experienced tax attorneys at Robert J. Fedor Esq., LLC can look over your case and help you figure out if your tax debts qualify for a bankruptcy discharge. We have offices in Chicago and Cleveland, but we’ve helped people across the United States get the tax help they need. Contact us today.