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by p mccrite on December 25th, 2004

p mccrite

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If I declare bankruptcy, will I still owe back taxes?

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Answers. 4 helpful answers below.

  • by Andy Is Wicked Married to Penal Colony on January 22nd, 2005

    Andy Is Wicked Married to Penal Colony

    From http://www.nolo.com

    (see asteriks below)

    Also dpends on how your locality/country defines "recent" and what local laws apply.

    Nondischargeable Debts

    The following debts are nondischargeable in both Chapter 7 and Chapter 13. If you file for Chapter 7, these will remain when your case is over. If you file for Chapter 13, these debts will have to be paid in full during your plan. If they are not, the balance will remain at the end of your case:

    -debts you forget to list in your bankruptcy papers, unless the creditor learns of your bankruptcy case
    -child support and alimony
    -debts for personal injury or death caused by your intoxicated driving
    student loans, unless it would be an undue hardship for you to repay
    -fines and penalties imposed for violating the law, such as traffic tickets and criminal restitution, and

    ***-recent income tax debts and all other tax debts.***

    In addition, the following debts may be declared nondischargeable by a bankruptcy judge in Chapter 7 if the creditor challenges your request to discharge them. These debts may be discharged in Chapter 13. You can include them in your plan, and at the end of your case, the balance is wiped out:
    -debts you incurred on the basis of fraud, such as lying on a credit application
    -credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing
    -loans or cash advances of $1,150 or more taken within 60 days of filing
    debts from willful or malicious injury to another person or another person's property
    -debts from embezzlement, larceny or breach of trust, and
    -debts you owe under a divorce decree or settlement unless after bankruptcy you would still not be able to afford to pay them or the benefit you'd receive by the discharge outweighs any detriment to your ex-spouse (who would have to pay them if you discharge them in bankruptcy).

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  • by Mike on April 20th, 2007

    Mike

    A good site for this question is:

    http://www.bankruptcy-lawyer-attorney.com/7Bankruptcy/7after.htm

    Which states, in part:

    "All debts are discharged unless they fall into a particular category:

    Taxes that became due within the past three years or were assessed within the previous 240 days;"

    I think this pertains to income taxes but either this or another similar rule covers property taxes as well.

    Mike

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  • by lorna.cameron.5 on May 3rd, 2012

    lorna.cameron.5

    if you go bankrupt does overtime get included what you pay back?

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  • by lorna.cameron.5 on May 3rd, 2012

    lorna.cameron.5

    if i go bankrupt will i have my dept to tax credits wipped off

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