Tax Debts in Bankruptcy

Will Filing For Chapter 7 Bankruptcy Discharge Tax Debts?

Whether you can discharge (eliminate) tax debts in Chapter 7 bankruptcy depends on what type of taxes are owed, when they first became due, and why you haven't yet paid them. Here’s a rundown of which tax debts are and are not dischargeable in Chapter 7 bankruptcy.

Tax Debts in Chapter 13 Bankruptcy

In Chapter 13 bankruptcy cases, some types of tax debts may be discharged and others you’ll have to pay in full through your Chapter 13 plan.

Will Filing For Chapter 7 Bankruptcy Remove A Tax Lien?

Although you can get rid of some tax debts in Chapter 7 bankruptcy, if a tax lien has been recorded against your property, you are unlikely to be able to remove it in Chapter 7 bankruptcy. There are a few exceptions, however. Read on for details.  

Can You Stop IRS Wage Garnishment by Filing for Bankruptcy?

If the IRS has garnished your wages for unpaid taxes, filing for bankruptcy can give you some relief. It's only temporary, however: Bankruptcy doesn't wipe out most tax debts.

Will Bankruptcy Stop the IRS From Collecting Tax Debts?

The automatic stay will stop the IRS from collecting taxes debt that you owe once you file a Chapter 7 or Chapter 13 bankruptcy. But depending upon the nature of the tax debt you owe, the IRS may be permitted to collect from you later.