Can Unpaid Taxes be Discharged in Bankruptcy? 4 Conditions That Need to be Met First
Many people are surprised to learn that some local, state, and federal taxes are dischargeable in bankruptcy. However, it’s a complicated process to determine what tax debt qualifies, and not everyone who tries to have their tax debt forgiven will succeed.
That said, if you owe a significant amount of back taxes and are in financial distress, it’s probably worth your time to see if your tax debt qualifies for discharge.
Seek to Discharge Tax Debt as a Last Resort
While it’s possible to discharge tax debt, it’s difficult to do and should be utilized as a last result.…