Bankruptcy

Income taxes can be discharged in bankruptcy. There are very specific rules: (a) the tax years must be at least three years old; (b) the tax returns must have been filed at least two years ago; (c) and the taxes must have been assessed at least 240 day ago. Sometimes you must make monthly payments until the tax years will qualify for the discharge. I can help you figure this out.

Most other taxes cannot be discharged in bankruptcy. Neither can student loans, but help MAY be coming. Contact your Congressman about this, if it's an issue for you.

The new law will require most wage earners to file a Chapter 13 payment plan, rather than a Chapter 7 liquidation plan. It will also require you to attend a financial counselling program before filing. The new law has many changes relating to writing off income taxes. Bankruptcy filing is no longer a simple matter.

But remember, as a minimum, under the new law, you MUST file at least the last four years of your missing tax returns. You can call me for that.

Bankruptcy filing requires the use of a bankruptcy attorney. I can only disuss the income tax related issues, and assist with income tax preparation.