Will bankruptcy get rid of my tax debt? - Bankruptcy Law Questions and Answers- LawQA.com

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Will bankruptcy get rid of my tax debt?

I owe over $10,000 in back taxes. If I file for bankruptcy, will those debts be excused? I accumulated the tax debt because I own my own business, but my son had several expensive medical problems over the last few years, and I couldn't afford to pay my taxes. I need to get rid of these debts. If I can't file for bankruptcy to eliminate my tax debt, can I take out a personal loan to pay off my taxes and then file bankruptcy to eliminate that loan?

Answer By Bill Zurinskas
Bankruptcy Law Center
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Bankruptcy can discharge older income tax debt (I assume you are talking about income taxes) . If you filed bankruptcy today, income taxes owed for 2011, 2010, 2009, and 2008 are not dischargeable. Income taxes owed for 2007 might be dischargeable, assuming you filed the return timely on 4-15-08. 2007 or earlier income taxes may be dischargeable. Talk to an experienced bankruptcy attorney or CPA, since there are more several prerequiistes for the discharge of income taxes in bankurptcy.

Answer Applies to: Colorado
Replied: 9/22/2011

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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Discharging taxes depends on how long you owe them and what kind of tax debt they are. If they are older than three years you may be able to discharge them but you should bring your tax debt to a good attorney for them to review to see if they qualify for discharge. You can take a loan to pay the taxes, which if that loan is unsecured than technically it would be dischargeable. However, you may have the creditor make a motion to find that debt non-dischargeable and survive the bankruptcy. You should talk to an attorney in your area for more details.

Answer Applies to: New York
Replied: 9/22/2011

Bankruptcy Law office of Bill Rubendall
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Most taxes are not discharged in bankruptcy. Some old taxes (for tax years more than 3 years prior to filing bankruptcy) can be discharged if you meet certain requirements. You cannot take out a personal loan to pay off my taxes and then file bankruptcy to eliminate that loan.

Answer Applies to: California
Replied: 9/21/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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See a competent bankruptcy attorney about the tax debt. Some taxes are dischargeable. take a copy of a "plain English transcript" to the meeting with the lawyer. You can get one from your local IRS office. It is bankruptcy fraud to take out a loan with the intent to discharge it, so don't do that.

Answer Applies to: California
Replied: 9/21/2011

Mercado & Hartung, PLLC
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Tax liability over 3yrs old is dischargeable.

Answer Applies to: Washington
Replied: 9/21/2011

Ashman Law Office
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Taking out a loan and immediately filing bankruptcy would be fraudulent. No that won't work. Some taxes over 3 years old may be dischargeable. You need a good lawyer to determine how to address taxes.

Answer Applies to: Georgia
Replied: 9/20/2011

Answer By Kevin Heupel
Heupel Law
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Bankruptcy can eliminate tax debt, but it depends on the tax year and when you filed your taxes. Right now, taxes from 2007, 2006, and earlier are dischargeable assuming that you filed the tax returns more than two years ago.

Answer Applies to: Colorado
Replied: 9/20/2011

Answer By Dan Wilson
Dan Wilson Bankruptcy
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No, you cannot discharge debt taken on to pay taxes. You may be able to discharge some or all of the taxes if the returns were filed on time and the tax was due more than three years ago. There's another requirement I do not understand. Key here is the returns must have been timely filed.

Answer Applies to: Colorado
Replied: 9/20/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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Among other things income taxes cannot be discharged unless they are at least 3 years old from the date assessed. Also taking a loan out knowing you are not going to pay the money back is fraudulent. I would not advise it.

Answer Applies to: California
Replied: 9/20/2011

Braunstein Law, PC
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Generally, tax debt is non-dischargeable in bankruptcy. However, there are certain circumstances in which tax debt can be discharged. You will want to consult with a bankruptcy attorney regarding your situation to determine if the back-owed taxes are eligible to be discharged.

Answer Applies to: Oregon
Replied: 9/20/2011

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