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Bankruptcy and Tax Debt

Filing Bankruptcy to Discharge Tax Debt

Contrary to what I've found many to believe, it is possible to eliminate tax debt in bankruptcy. When seeking bankruptcy to address certain tax debts, there are lots of important considerations to make and timing is everything. It is extremely important ot seek the advice of an experienced bankruptcy attorney when approaching bankruptcy twith the intent to eliminate taxes.

What Tax Debts Can be Discharged?

Generally, the following types of taxes can be eliminated in chapter 7 and 13 bankruptcy:

  • Taxes that are at a minimum of 3 years old.
  • The returns for the taxes that are at least 3 years olf have been filed in the previous 2 years.
  • There has been no tax assessment within the previous 240 days.
  • There was no fraud or tax evasion involved with the tax liability.

If you have tax debts that meet these requirements, it could be possible to discharge these debts. Feel free to call us here at Arizona Bankruptcy Advoates at 480-355-1377 for a free consultation, or fill out our intake form here:

We are a debt relief agency, and we proudly help people seek relief under the bankruptcy code.