Taxes and Bankruptcy

I’ve been doing this job for quite a while now and have talked to countless potential clients and debtors. In my conversations with potential bankruptcy debtors, a common topic is the misunderstanding of how taxes are treated in bankruptcy.

Most people I discuss bankruptcy with are under the impression that there is no way to get relief when it comes to taxes. This is simply not the case. In fact, in some situations it is possible to get 100% relief from taxes owed, of course, depending on the circumstances.

There are many options for tax releif in bankruptcy. It’s possible to disharge tax debt, it’s possible to pay a portion that is not dischargible and discharge another portion. There are many different scenerios and options.

They say you can count on death and taxes. Yes you can count on both, however, you may be able to escape one, and not the other. If you take anything away from this post, it should be that when it comes to taxes in bankruptcy, there are options. It is very case specific as to what those options are. So if you’re considering bankruptcy and have taxes owed, give me a call and we’ll figure it out.