Can my tax debts be discharged in Chapter 7 Bankruptcy?

Generally, only income taxes can be eliminated through bankruptcy, and only if certain conditions are met: 

• You can’t discharge unpaid taxes if you willfully evaded paying your taxes or engaged in fraud.
• Your tax debt has to be at least three years old.
• You must have filed the tax return for the debt at least two years before filing for bankruptcy.
• The debt must have been assessed by the IRS at least 240 days before the bankruptcy is filed

If you have tax liens they cannot be dealt with by Chapter 7 bankruptcy. Even if you file for bankruptcy, tax liens will stay attached to your property. That means you will have to pay them when you sell your property.

 Visit our Learning Center to learn more: 

• What Happens to My IRS Tax Debt If I File Bankruptcy?
• How Can You Eliminate Tax Debt to the IRS with Bankruptcy?