chapter 7 bankruptcy: What Happens to Tax Debt in a Bankruptcy?
- 03/01/23 03:22 PM
When an individual files for bankruptcy, their tax debt may be handled differently depending on the type of bankruptcy filing and the specific circumstances of the case. Here are the general guidelines: Chapter 7 Bankruptcy:In Chapter 7 bankruptcy, most unsecured debts are discharged, meaning they are wiped out entirely. However, certain tax debts may not be dischargeable, such as those for which a tax return was not filed or those resulting from fraud or willful evasion of taxes. If a credit card is used to pay off a nondischargeable tax debt, the credit card balance will also be nondischargeable debt if a … (10 comments)
When an individual files for bankruptcy, their tax debt may be handled differently depending on the type of bankruptcy filing and the specific circumstances of the case. Here are the general guidelines:
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