QUESTION
Can filing for bankruptcy eliminate tax debt as well?
Asked on Mar 16th, 2012 on Bankruptcy - New York
More details to this question:
Can some lawyers find it in their hearts to help me answer a couple of questions WITHOUT charging an arm and a leg or telling me to call them for further details. I live in NYC and have been unemployed since 2008. Unemployment checks stopped since 2010 and I am in DEBT. I owe $35,000 in credit cards and they have send it to collections. I owe $2,500 in New York State Tax for 2009. I owe $1,500 in New York State Tax for 2010. I owe $1,500 in IRS Tax for 2009. I owe $$1,000 in IRS Tax for 2009 New York State Tax has put a Tax Levy on my bank account, I currently cannot access my account (although there is nothing in the account because NYS pulled out the last $185 left in the account) I do not have any assets and I am still unemployed. I was thinking of filing for Chapter 7 Bankruptcy, will All these DEBTS be eliminated including tax debts? How long does the process take if I file for bankruptcy next week? Can I open up a corporation and start working for myself, if yes, when can I open the Corp? How much will it cost for the bankruptcy process from start to finish? (give me a ball park amount if you can, doesn't have to be exact) Can you help me get ALL these questions answered. If so, can someone lead me to the right lawyer in NY who can help me get through this process and start fresh.
3 ANSWERS
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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Tax debt is non-dischargeable until it is over a certain age; yours is not.
Answered on Mar 19th, 2012 at 2:20 PM
Glen Edward Ashman
You should avoid any lawyer who pretends he can answer your questions online with the minimal information you posted. With the little bit you posted there is no way to even tell you that you can file Chapter 7 at all. To give basic answers, I require completion of a 21 page worksheet and review of additional documents. If you find a lawyer that bypasses that, run like hell and get a good one. 2010 and 2011 taxes are not dischargeable. 2009 taxes are not dischargeable now either, but depending on details you omitted they may be dischargeable later in the year. Most credit card debt is dischargeable but some such debt, depending on the age and circumstances could be non-dischargeable.
Answered on Mar 16th, 2012 at 9:09 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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Income Taxes are (possibly) dischargeable in bankruptcy if they are for taxes that became due for tax years greater than three (3) years ago; the tax return was filed at least two (20 years ago; the taxes were "assessed at least 240 days ago, and there was no indication that there was fraud or evasion of taxes. Having stated the broad general rules, let me note that there are many, many, many ways that taxes can become non-dischargeable in the event certain things happened or did not happen since the tax liability was assessed. This is not something to attempt on your own, nor should an inexperienced Bankruptcy attorney rely on this broad outline. See a Bankruptcy attorney with sufficient experience to determine if any of the tax liability is dischargeable.
Answered on Mar 16th, 2012 at 2:57 PM