If I file Chapter 13 due to house about to be sold at foreclosure sale, can federal taxes be included in the bankruptcy? 21 Answers as of March 04, 2014

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, they must be included. Get a tax transcript for every year in question. Take that to the lawyer who is going to do the Ch13. Some might not be dischargeable and you need to know that before a plan is filed.
Answer Applies to: California
Replied: 3/4/2014
MCBRIDE LAW OFFICE | Robert E. McBride
Your federal taxes may or may not be discharged (wiped out) depending on the type of tax (eg personal income tax, employer/payroll/withholding tax, sales tax, etc) and depending on the recency of each tax debt. You should review each of your tax obligations with a bankruptcy attorney to see which are eligible for discharge and which are not.
Answer Applies to: Pennsylvania
Replied: 2/28/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, all your debts should be included in the bankruptcy
Answer Applies to: New York
Replied: 2/28/2014
The Law Office of M Grater LLC
The Law Office of M Grater LLC | Mark O. Grater
Yes, the back taxes can bi included in a Chapter 13 plan and will receive priority treatment over other debt.
Answer Applies to: Connecticut
Replied: 2/28/2014
Stuart P Gelberg
Stuart P Gelberg | Stuart P Gelberg
Yes, they MUST be included. Whether they are discharged is another Question
Answer Applies to: New York
Replied: 2/28/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    All your debts must be "included" in a bankruptcy filing. You are required to disclose and list EVERY debt you owe whether you want or must repay. The harder question is whether your federal taxes will be dischargeable, and if they are from recent years the answer will be no. If you are planning to file a chapter 13 case to try to save your home I certainly hope you have hired an experienced lawyer to help you. Chapter 13 cases are complicated and difficult - so much so that many bankruptcy lawyers choose not to do them. If you are serious about trying to prevent a foreclosure you MUST find a lawyer to work with, and it will be much easier to do that BEFORE you file the case on your own rather than after the fact when you realize you are in over your head.
    Answer Applies to: Colorado
    Replied: 2/28/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    Yes they can.
    Answer Applies to: South Carolina
    Replied: 2/28/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    Federal taxes are considered "priority taxes" if they cannot be discharged, although they can be paid off through a Chapter 13 plan. If the taxes were assessed more than 3 years ago, they are treated as "non-priority debt" and will get the same treatment as all other unsecured debt, meaning they will only get paid to the extent that you have the ability to pay them beyond the priority debts. The remaining non-priority taxes will be discharged at the end of your Chapter 13 plan if you complete it. Assuming you are filing the Chapter 13 in good faith, your plan must include a way to cure the arrearage on your mortgage AND it must pay off your priority taxes at the statutory interest rate (which is 3 percent for IRS.) If you aren't able to demonstrate that you have the means to handle these obligations, your case will be dismissed and you will not be able to keep your house out of foreclosure. The judge can bar you from filing another Chapter 13 for a period of time if s/he determines your filing was in bad faith, so you should not take this filing lightly. Very few people are successful in a Chapter 13 without legal help, even lawyers who think they can do it themselves.
    Answer Applies to: Oregon
    Replied: 2/28/2014
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    All debts need to be listed in your bankruptcy petition. What happens with that debt will depend on a number of facts including the type of case you are filing and type of debts you have and what you plan to do with the collateral. Whether income taxes are potentially dischargeable will depend on facts you haven't provided in your question, facts that bear on when these income taxes have been assessed. Your attorney will want to obtain account transcripts from the tax authorities to verify the amounts and determine what may be dischargeable. Chapter 13, in my humble opinion, is too complicated to handle without legal representation. The success rates on pro per is in the single digit area, like 1%. I highly recommend you seek out a local qualified bankruptcy attorney versed in the chapter 13s and meet with that person to get to the bottom of these questions and other details you will want to consider before deciding whether to file and if so when.
    Answer Applies to: California
    Replied: 2/28/2014
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    You can include federal taxes in your bankruptcy as part of payments that you will make in your chapter 13 plan. If this were a Chapter 7 bankruptcy you may be able to discharge those taxes if they were assessed more than three years ago.
    Answer Applies to: Connecticut
    Replied: 2/28/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Yes. I am assuming the taxes are not dischargeable. But yes, they can be included.
    Answer Applies to: Colorado
    Replied: 2/28/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    When you file any sort of bankruptcy, you must include all debts, and that means you include your tax debts. Without knowing more about the tax debt, it is impossible to guess whether some, none or all of your tax debt might be eliminated in a bankruptcy.
    Answer Applies to: Nevada
    Replied: 2/28/2014
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    If you mean income taxes, they must be "included" in the bankruptcy. I'm not really sure what you mean by the word "included". All assets and all debts must be included in any bankruptcy case. In a Chapter 13, you must provide 100% payment for all priority debts, which includes certain taxes (those less than 3 years old from the date the return was last due to be filed or in which a tax return was either not filed, or filed within 2 years prior to the bankruptcy case being filed).
    Answer Applies to: California
    Replied: 2/28/2014
    Law Office of Marlin Branstetter
    Law Office of Marlin Branstetter | Marlin Branstetter
    Taxes can be included but you may be required to show that they be paid in full during the life of the plan if they are non-dischargeable. Some taxes may be discharged entirely. You should contact an experienced bankruptcy attorney to discuss your options.
    Answer Applies to: California
    Replied: 2/28/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You must include all debt in your bankruptcy. Depending on the type taxes you may be required to pay them in full during your 13, or you may be able to discharge them.
    Answer Applies to: Nevada
    Replied: 2/28/2014
    Law Offices of Linda Rose Fessler | Linda Fessler
    Yes they can.
    Answer Applies to: California
    Replied: 2/28/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    Taxes should be included in your chapter 13. Any priority taxes must be paid through the plan as it is nondischargeable debt. Non-priority taxes are left to be paid with the rest of the general unsecured creditors and will be discharged upon successful completion of your plan payments and discharge.
    Answer Applies to: Indiana
    Replied: 2/28/2014
    Idaho Bankruptcy Law | Paul Ross
    The question is unclear. A Chapter 13 will stop the foreclosure. If you wish to keep the home, you will have to bring the arrearages current during the Chapter 13 Plan and make your regular monthly house payments as well. Federal taxes, if owed, will also be paid in full during the course of your Chapter 13.
    Answer Applies to: Idaho
    Replied: 2/28/2014
    Danville Law Group | Scott Jordan
    Yes, all of you debts and assets are included in the bankruptcy. Whether any or all of your taxes are dischargeable depends on meeting the criteria for discharging taxes in bankruptcy.
    Answer Applies to: California
    Replied: 2/28/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    When you file a bankruptcy petition (any Chapter), you must include all of your assets and all of your liabilities (including Federal, State and local taxes). Bankruptcy law does not allow for the selective listing of any of your financial issues. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Furthermore, the answer is based on California law and their application to bankruptcy law in California.
    Answer Applies to: California
    Replied: 2/28/2014
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    They are required to be included in a Chapter 13.
    Answer Applies to: Washington
    Replied: 2/27/2014
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