Can I discharge my old tax debt in bankruptcy?
Section 523 of the U.S. Bankruptcy Code governs the dischargeability of taxes. Generally, taxes on income owed to the IRS or a state are not dischargeable in bankruptcy unless they are owed for a taxable year for which a return was due more than three years before the filing of the bankruptcy case, and certain other requirements are met. For example, the return for the 2009 tax year would normally have been due on April 15, 2010. Taxes for that year would not be dischargeable in a bankruptcy case unless the case was filed after April 15, 2013.
Often, some of the tax obligation is dischargeable, but the more recent taxes are not. In that case, the dischargeable portion can be wiped out in a bankruptcy, thereby substantially reducing the total obligation.
Even if your income taxes are not dischargeable in a Chapter 7 bankruptcy, you may be able to deal with them through a Chapter 13 plan. In many Chapter 13 cases, we are able to set up a plan to repay the taxes, without future interest, while discharging other unsecured debts like credit cards and medical bills.
Other Frequently Asked Questions:
- Can a Chapter 7 bankruptcy save my home from foreclosure?
- Can bankruptcy help my credit score?
- Can bankruptcy help with my income tax obligation?
- Can bankruptcy protect my workers compensation settlement funds?
- Can I discharge my old tax debt in bankruptcy?
- Can I file for social security disability while I’m still working?
- Can I receive workers compensation benefits if I was injured before or after clocking out?
- Can I save my home by filing bankruptcy?
- Can my re-enlistment bonus be discharged in bankruptcy?
- Can the bankruptcy trustee in my case seize the funds in my bank account?
- Chapter 13 Basics
- Chapter 7 Basics
- Get help filing your income tax returns — for free!
- How can I stop debt collectors from harassing me and my family?
- How do I decide if bankruptcy is necessary?
- How do I know if bankruptcy is the right choice for me?
- How does the foreclosure process work in Georgia?
- How long must I live in this area before I can file bankruptcy here?
- I cosigned a debt for a friend and now he won’t pay. What can I do?
- I was fired after being hurt on the job. Can I still file for workers compensation?
- I was injured at work. Can I sue my employer?
- I was terminated from my job after a work injury. Now my condition has worsened. What are my options?
- I’m considering filing a Chapter 13 bankruptcy. Do I have to include all my debts?
- I’m starting to think I may have to file for bankruptcy. Where do I start?
- Mortgage and debt relief for active military personnel
- My car has been repossessed. Can bankruptcy help me get it back?
- My Chapter 13 case was dismissed. Can I file a new case and protect my property?
- My doctor released me to light duty, but my employer is insisting I do more strenuous work. What should I do?
- My ex assumed our joint debts as part of our divorce settlement. Now he’s filed bankruptcy. What can I do?
- My house is being foreclosed – What can I do?
- My workers comp doctor has released me to light duty work. Can my employer cut off my weekly benefits?
- My workers compensation doctor says I can return to work, but I can’t do the job. What can I do?
- Ripped off by a debt settlement company?
- Social security benefits — Can a creditor garnish my bank account and seize my social security funds?
- The trustee has filed a motion to dismiss my Chapter 13 case. What are my options?
- What can I do to improve my credit score?
- What to expect: First credit counseling course
- What to expect: Free bankruptcy consultation
- What to expect: Second credit counseling course
- What to expect: Your next appointment
- When is my bankruptcy case closed by the court? Is it possible to reopen the case?
- Where would my bankruptcy case be filed, and where would the hearings be held?
- Will paying off an old debt raise my credit score?