Can Taxes Ever Be Discharged in Bankruptcy?

People who are preparing to file bankruptcy frequently hear about the harm that bankruptcy can do to one's credit report and about what bankruptcy cannot do. For example, bankruptcy cannot wipe out student loans, child support or most taxes.

The short story, as mentioned above, is that most taxes cannot be discharged through bankruptcy. However, there is more to the story. Even if taxes cannot be discharged in a given case, there are often avenues to debt relief with regard to taxes. Filing Chapter 13 bankruptcy can buy time as it offers the opportunity to repay back taxes over three to five years without penalties.

Individual circumstances will determine whether any taxes can be eliminated or reduced through bankruptcy. See our page entitled Bankruptcy and Back Taxes for specific typical scenarios and their effect on opportunity to have taxes discharged in bankruptcy, including consideration of:

  • The age of the tax debt (more or less than three years old)
  • When tax returns were filed
  • When back taxes were first assessed with relation to the timing of the bankruptcy filing
  • Your good faith intent

It takes a skilled attorney with years of experience in bankruptcy law to maximize opportunities for debt relief related to bankruptcy and taxes. Ask one of our lawyers the pressing questions that are on your mind as you consider bankruptcy, such as, "Can taxes ever be discharged in bankruptcy?" From law offices in East Orange, Paterson, Jersey City and Newark, Goldman & Beslow, LLC, points the way to debt relief.

Contact Our Northern And Central New Jersey Chapter 7 and 13 Bankruptcy Attorneys

Call our experienced Essex County, New Jersey, bankruptcy lawyers today for a free one-half hour consultation at 973-414-8069 or 888-827-5493. Our lawyers serve Essex, Union, Hudson, Passaic, Bergen, Morris, Middlesex, Sussex and other New Jersey counties.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.