Tag Archives: tax liabilities
The Effects of Bankruptcy on Your Tax Obligations
While tax obligations generally cannot be avoided by filing for bankruptcy, there are certain exceptions. Taxes may be dischargeable depending upon the nature of the tax debt and the debtor’s actions prior to filing bankruptcy. There are two prerequisites for seeking discharge of taxes in bankruptcy. First, the obligations must be for federal, state or […]
What Tax Liabilities Can Be Discharged in Chapter 7?
The Bankruptcy Code strictly limits the ability of debtors to discharge tax liabilities in Chapter 7 bankruptcy. Taxes are considered priority debts, which means they are among the first to be satisfied from any funds derived from liquidation of the debtor’s assets. However, there are exceptions to the general rule. Certain income tax debts can […]
