Is it easy to eliminate tax debts through bankruptcy? 6 Answers as of October 13, 2010

I I do not know if it is easy or common, but if you meet the requirements, it is certainly possible. If you are referring to income tax debt, the requirements for discharge are (all of the following must be met): (1) it has been more than 3 years since the returns were last DUE (including extensions) to be filed, (2) the returns were timely filed _or_ it has been at least 2 years since the returns were filed, (3) there was no fraud involved or attempts to evade the tax, AND, (4) the taxes were not assessed within the last 240 days.

There are many exceptions to the above and things that increase the above time periods, so it is critical that you have a knowledgeable bankruptcy attorney analyze your situation.

Generally no. There are exceptions however. Contact an attorney for clarity on this issue.

No. Only debts more than 3 years old.

The discharge of taxes in a bankruptcy proceeding is a complex subject. Some taxes can be discharged, others can not. Factors that are important include what type of tax is it, how many years have passed since the tax year in question, when was the return filed, was there any assessment and if so, when was it made, was a return filed at all, and did the debtor file a fraudulent return or willfully attempt to evade taxes. You can start your research on this point by looking at 11 U.S.C. Section 523 (a) (1).

It would be best to consult a certified specialist in bankruptcy law and disclose to him all the facts and circumstances regarding the taxes that you owe. I have helped hundreds of clients to discharge taxes that they owe.

No it is not. Taxes are very hard to discharge.

No, it is not easy.