Tax Debt in Bankruptcy
Most tax obligations are not dischargeable in bankruptcy. However, there are exceptions to this rule. Personal income taxes that are over three years old can be discharged under some circumstances. Tax liens may be significantly reduced or eliminated in bankruptcy. Even taxes that you cannot cancel in bankruptcy may be reduced by restructuring the tax debt and paying it through a reorganization plan. Your attorney will discuss options for getting rid of taxes in bankruptcy if you have tax bligations.