Can I Get My Tax Debts Wiped Out In Bankruptcy?
Old Taxes debts can be discharged

Can I Get My Tax Debts Wiped Out In Bankruptcy?

If you filed tax returns but didn't pay, and the taxes are more than three years old, you may be in luck.
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Updated: 2021-12-24
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Taxes and other priority debts must be listed on Schedule E/F (Form 106 E/F)

Most tax debts can't be discharged in bankruptcy. But there are exceptions for taxes more than 3 years old for which you have filed timely returns. 

If you haven't filed tax returns, you're out of luck. You'll have to wait at least three years after the taxes are filed before bankruptcy can do anything for you.

And having others file tax returns for you (e.g. the government) doesn't count, in most cases. You have to be the one who filed the return.

Also bankruptcy can't help you with property taxes because property taxes create a lien on your property which remains after bankruptcy, regardless of whether your personal liability for the debt is discharged. Tax liens must be paid before the property can be sold.

Taxes are a priority debt, (after child support), so all tax debts must be paid in bankruptcy before any money goes to unsecured creditors.

For more information see Chapter 9 of How to File for Chapter 7 Bankruptcy (Nolo, 2021 22nd ed)


Legal Consumer - Law. Jurisdictional relevance: The content of this article pertains to all US states and counties.

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