Bankruptcy Discharges Income Tax Debts (Some of Them)

Wasson and ThornhillIncome Taxes

Bankruptcy discharges income tax debts. They just need to meet some conditions, mostly based on when they were due and whether and when filed.   Bankruptcy DOES Write Off Income Taxes There are certain very special debts that bankruptcy never discharges (writes off). Child and spousal support is a good example. See Sections 523(a)(5) and 101(14A) of the U.S. Bankruptcy Code. Income taxes are … Read More

Stop Tax Collections to Start Monthly Payment Plan

Wasson and ThornhillIncome Taxes

Filing Chapter 7 bankruptcy gives you a break from income tax collections, precious time to deal with a recent tax you must still pay.   We ended the last blog post saying that sometimes a Chapter 7 bankruptcy will stop a wage garnishment only temporarily. One such situation is if the IRS (or state tax agency) is chasing you on … Read More