Can bankruptcy discharge your tax debts? The cautious answer is no. In general, you will still owe the IRS whether or not you file for bankruptcy. The full answer is more complicated. Some back taxes can be discharged, if all the right criteria are met. Only an experienced bankruptcy lawyer can determine if your situation qualifies.
The law firm of Stamps & Stamps, Attorneys at Law, in Dayton, Ohio, provides the focused representation in bankruptcy law to discharge any eligible taxes and take full advantage of your bankruptcy filing to maximize debt relief and asset protection.
Your Roadmap to Financial Freedom Here | Dayton Offices: (937) 247-6447 or Toll Free: 877-782-6770 | Free Initial Consultation | E-Mail Us
In general, state and federal income taxes and local property taxes are nondischargeable. Most taxes are still owed after a Chapter 7 bankruptcy or are paid over time (without penalty) in a Chapter 13 bankruptcy.
However, certain tax debts that are at least three years old can be discharged in Chapter 7, depending on when they first came due and whether tax returns were filed on time. For example, if you owe the IRS for the 2007 tax year, the tax became due on or about April 15, 2008. If you filed on time but couldn’t pay those taxes, they might be dischargeable. However, any taxes incurred more recently are nondischargeable.
Even the scenario above has exceptions. Bankruptcy lawyer Eric Stamps can examine your specific situation to determine if you are eligible for tax relief through bankruptcy. Even if you are on the hook for past-due taxes, you may still be a candidate for bankruptcy if you are behind on your mortgage or if you have substantial unsecured debts such as credit card balances or medical debts.
Stamps & Stamps, Attorneys at Law, offers a free initial consultation to answer your questions about taxes and any aspect of bankruptcy. We serve the Dayton area and surrounding counties of Ohio. Call us at (937) 247-6447 or 888-435-0085, or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.