Can bankruptcy discharge past due income tax debts?
Tax season brings up worries for those who cannot pay a large looming tax bill. Alternatively, tax liabilities may have compounded over several years with penalties and interest making it impossible to pay off the debt. Some may wonder if a bankruptcy filing can remove past due income tax debts.
If the taxes meet the following requirements, they are dischargeable along with all the regular unsecured debts in either a Chapter 7 or Chapter 13 bankruptcy.
Timing rules
The year of the tax debt is important when reviewing whether a Chapter 7 bankruptcy might help. Because ...



