Tax Debts in Bankruptcy

Many people filing for Chapter 7 or Chapter 13 bankruptcy want to know what happens to their tax debts in bankruptcy. If you owe money to the IRS or another taxing authority, you can get rid of that debt in bankruptcy in very limited circumstances. In Chapter 7 bankruptcy, if your tax debt meets certain criteria, you can discharge it. In Chapter 13 bankruptcy, you can pay your tax debts through your repayment plan.

Find out which tax debts can and cannot be discharged in bankruptcy, how the automatic stay helps stop IRS collection temporarily, and other ways bankruptcy might help with tax debt.