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.
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