QUESTION

Will chapter 13 clear all tax debt?

Asked on Feb 27th, 2019 on Bankruptcy - Indiana
More details to this question:
I owe back taxes and currently going thru wage garnishment.
Report Abuse

1 ANSWER

Bankruptcy Attorney serving Burbank, CA
Reviews not shown
3 Awards
Chapter 13  should eliminate all income tax debt because you will be required to pay any priority taxes 100% in the Chapter 13 and any nonpriority taxes would be discharged (assuming you complete all the required plan payments). Priority taxes are essentially those which are owed for years in which the tax returns were last due to be filed more then 3 years prior to filing the bankruptcy case or assessed within 240-days prior to the case being filed, or that are still assessable after the case is filed.  There are certain events which extend these time periods, such as having an open offer in compromise.  
Answered on Mar 05th, 2019 at 12:19 PM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters