Can I Clear Off My Tax Debt with Bankruptcy?

: Reese Baker & Associates

  Filed under: Taxes

payroll taxOne of the most common debt problems many individuals can run into is with their tax debt. The costs for this keeps accumulating, and there soon seems to be no way to get it under control. You want to be sure to discuss this particular debt with your Houston bankruptcy attorney, and don’t just assume it is one obligation that is not handled under a bankruptcy.

Tax Debt Discharge

There are some types of tax debts that can be included in your discharge, but there are others that cannot. In many cases if it is an older debt for example more than 3 years, and you filed over 2 years ago, plus your last assessment was over 240 days ago, then it may be an acceptable debt for discharge. This will not be the case if you committed tax evasion or fraud. Overall there are some exceptions to all of this criteria, but your bankruptcy attorney will know where you stand with your tax debt and how it will be handled during the bankruptcy. It could be your tax obligation will be deemed to be a priority debt, and as such will not be eligible for the discharge that comes with your bankruptcy. Even if your tax debt is not one that is discharged, but you have several other debts that are, a successful bankruptcy carried out by your bankruptcy attorney, could mean that you will now be able to address your tax debt by paying it off.