There's a reason it's often said the two things that can't be avoided are death and taxes. Even when filing for bankruptcy, you're generally still required to pay your taxes.
Congress has determined that certain types of debts aren't dischargeable. There are 19 categories of debt excepted from discharge under Chapter 7 and a more limited list of exceptions under Chapter 13.
Some common types of debt ineligible for discharge are certain taxes, federally guaranteed student loans, alimony and child support, and debts arising from a personal injury claim that was drugs or alcohol-related.
If you're overdue on your taxes from a decade ago, you may be able to wipe the slate clean with bankruptcy. But, if your taxes are overdue by three years or less, they're immune to bankruptcy.
This includes federal, state, and local taxes and often also includes business-related taxes and property taxes.Any loan you took out to help you pay off overdue taxes is also immune to a bankruptcy.
If you're overwhelmed with other debt, filing for bankruptcy protection still may be a good option for you. If you have credit card balances, medical bills, mortgage payments or other personal loans that you can't pay, it might be time to consider filing for bankruptcy. Filing for bankruptcy can help you prioritize your debts and regain control of your finances.
Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.