|
Taxes in BankruptcyThere is a general misconception that taxes cannot be discharged in bankruptcy. Although there are a number of technical rules to be mind and thoroughly followed, most tax liabilities are dischargeable. Bankruptcy is the last resort for dealing with delinquent tax bills. There are two basic types of bankruptcy available to average taxpayer to discharge delinquent taxes: liquidation under Chapter 7 and wage earner plans under Chapter 13. In Chapter 7 all of bankrupt taxpayer's assets and liabilities are marshaled. All assets, except certain exempt assets, are liquidated and distributed to creditors in the manner specified by the bankruptcy code. If non-exempt assets are insufficient to pay all creditors, most of the unpaid debts are forgiven; i.e., they are discharged. Generally, all income taxes, both Federal and State taxes may be discharged if they are old enough. In the case of the income taxes, they are dischargeable in Chapter 7 if all of the following criteria are met.
Contact us in San Francisco, Oakland or San Jose Tax Bankruptcy related links |
|
||||||||||||||
| San Francisco Tax Attorneys | Oakland Tax Attorneys | San Jose Tax Attorneys | ||||||||||||||||
| Page 21 | © Copyright 2005-2010, Law Offices of Alex Gluzman. Disclaimer. | Call toll free: 1-800-581-4829 | ||||||||||||||