Will Filing for Bankruptcy Wipe Out My Tax Debt?

Will Filing for Bankruptcy Wipe Out My Tax Debt?

Believe it or not, personal income taxes are eligible to be discharged in Chapter 13 bankruptcy and Chapter 7 bankruptcy.

However, in order for a tax debt to be dischargable in bankruptcy, it MUST meet the following criteria:

  1. The tax debt must be at least 3 years old. That is, the due date of the tax debt must have been at least 3 years ago
  2. The tax return for the tax year must have been filed at least 2 years ago.
  3. The person filing bankruptcy or the “Debtor” must not have been assessed for the taxes in the last 240 days.
  4. The tax return was not fraudulent.
  5. The tax payer isn’t guilty of tax evasion.

If you have a significant tax debt and are considering filing bankruptcy, contact an experienced Arizona Bankruptcy Attorney, because you may be able to get rid of it.

Please be aware that any information on this website is for educational purposes only and is not intended to be legal advice. If you need legal advice, please contact an attorney, or contact the Yontz Law Group, P.C. for a free consultation with a bankruptcy attorney in Mesa, Gilbert, Apache Junction, Phoenix, or throughout the state of Arizona.