Will Bankruptcy Void Any Owed Taxes?

You should think about several things seriously if youwhen you file bankruptcy there are five criteria you
are going to file bankruptcy.have to meet.
First and foremost you should do everything you can
to save yourself as much money, trouble and time as1. You cannot be guilty of tax evasion.
you can. Take some time and discuss this with your2. The date the tax was due was at least 3 years
bankruptcy lawyer, you may have to be forceful toago
accomplice this as they may want to come up with3. The tax return was filed at least 2 years ago
quick solutions to get your case in front of the judge4. The tax assessment is at least 240 days old
and finalized.5. The tax return cannot have been fraudulent
Under chapters 7 and 13 your tax debt may be eligibleIf you can meet all of the above chances are you can
to be wiped out. If you do file for bankruptcy this is onehave the tax debt discharged when you file for
of five ways for you to get out of tax debt. Its notbankruptcy.
quite as simple as just filing bankruptcy; you also haveAlthough bankruptcy may seem a great way to clear
to meet other requirements to be eligible. Before youyour debt there are consequences that come along
actually decide to file you should insure your effortswith this decision. Your credit will plummet and it will
would not be in vain by determining beforehand thattake you years to rebuild your credit score. If your filing
you meet the requirements to get out of tax debt.just to get your taxes discharged you might want to
Once you are sure you meet the requirements its timeconsider some other options. You can set up a
to decide if you will file under chapter 7 or chapter 13.payment plan with the IRS or visit one of the many
With chapter 7 you will be able to get your debt fullysites that offer ways of getting out of debt without
discharged up to the allowable limits. Chapter 13 willbankruptcy. Basically if there are other options, don not
normally be a payment plan put in place and you willfile, but if you have no other option and you have been
have to pay back a portion of the debt you incurredtold bankruptcy is your best chance for starting over,
while the rest will discharged.then talk to your lawyer and decide if chapter 7 or
If you are hoping to have your taxes taken care ofchapter 13 is the right one for you.