QUESTION
If I owe the IRS 12013.95 can I file that along with my other debts in bankruptcy?
Asked on Nov 20th, 2012 on Bankruptcy - New Jersey
15 ANSWERS
When you file bankruptcy you need to include all debts, even if you believe that those debts cannot be discharged. Income tax debt can be discharged if some conditions are met. Generally, the tax debts need to be at least three years old and tax returns must have been timely filed. The tax must have been assessed at least 240 days before you file bankruptcy. There must be no fraud or willful evasion by you. Discharging taxes in bankruptcy is complicated and you should seek the advice of am experienced attorney.
Answered on Nov 27th, 2012 at 6:21 AM
Daniel James Wilson
Great question! Tax issues frequently come up in bankruptcy. To oversimplify, taxes are more often than not non-dischargeable in a Chapter 7. In rough terms, taxes are dischargeable in Chapter 7 only if: 1) tax returns were timely filed, 2) taxes were due more than three years ago, and 3) tax was assessed by IRS more than 240 days ago. Sometimes the best way to deal with taxes is to file under Chapter 13 rather than under Chapter 7. The taxes are generally still non-dischargeable unless the requirements above are met, but they can be paid through the plan. Disclaimer: Taxes and bankruptcy is VERY complicated. It requires an experienced Chapter 13 attorney. Footnote: Regardless which Chapter you file under you must list all debt, including taxes.
Answered on Nov 26th, 2012 at 5:37 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Credit card debt and most medical debt can be eliminated with bankruptcy; non-dischargeable debt mostly includes DSOs (domestic support obligations - child support or alimony), most taxes (however, there are some exceptions to that general rule), and certain judgments for personal injuries where the defendant was intoxicated; there are some other non-dischargeable types of debt, too, that I have not listed but my goal here was to provide you with simply a BASIC idea of what's not dischargeable; you would need to consult an attorney regarding the tax debt because SOME of it may be dischargeable.
Answered on Nov 21st, 2012 at 9:33 AM
William H. Von Willer
You need to list all of your debts including the debt to the IRS which may or may not be discharged.
Answered on Nov 21st, 2012 at 9:32 AM
Generally you cannot discharge federal income tax debt until at least three years after filing. There are exceptions, but that is the general rule.
Answered on Nov 21st, 2012 at 8:13 AM
Bankruptcy Law Business Attorney serving Asheville, NC
Partner at
Pitts, Hay & Hugenschmidt, PA
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The IRS can definitely be included in a chapter 13, and may be dischargeable in chapter 7.
Answered on Nov 21st, 2012 at 8:13 AM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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It depends on whether or not the taxes have been assessed more than three years ago. If returns were not filed the taxes were never assessed and hence cannot be discharged in bankruptcy.
Answered on Nov 21st, 2012 at 8:13 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Nov 21st, 2012 at 8:13 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes it must be listed as a debt whether it receives a discharge is a different question.
Answered on Nov 21st, 2012 at 8:12 AM
Everything can & must be filed in a bankruptcy, but the issue is whether or not the debt to the IRS can be eliminated through a bankruptcy. Determining if a tax debt can be eliminated is a complex matter that requires the person to know the type of tax debt, when the return was filed, the reason for the tax liability as well as other information. Not an issue easy to give you in an online forum.
Answered on Nov 21st, 2012 at 8:12 AM
Business Litigation Attorney serving Orange, CA
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Law Offices of Frank Granato
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It depends on how old the taxes are. You may want to wait filing until the statute of limitation runs out.
Answered on Nov 21st, 2012 at 8:12 AM
When you file a bankruptcy, you must list all of your debts, including debts owed to the IRS/ I would need a lot more information before I could tell you if that debt would then be discharged in your bankruptcy.
Answered on Nov 21st, 2012 at 8:11 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Income taxes that are more than 3 years old, can be discharged.
Answered on Nov 20th, 2012 at 2:42 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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Depending on the age of the tax debt, the type of tax, when the tax returns was filed, and when the tax was assessed, you may be able to eliminate the tax debt in bankruptcy. It may be necessary to obtain an account transcript from the IRS to make the calculations. Otherwise, you may be able to stop further interest and penalties and repay the tax debt over up to five years through a Chapter 13 plan.
Answered on Nov 20th, 2012 at 2:42 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
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Yes, in NJ, it can be included, but if you file a 7 it is not discharged. If you file a 13, it would be paid through the Plan.
Answered on Nov 20th, 2012 at 2:41 PM