CHAPTER 13 BANKRUPTCY

Chapter 13 bankruptcies treat tax debts the same as a chapter 7 except there is a payment plan to repay some of the debt.  Employee ayroll taxes are not dischargeable in a chapter 13 bankruptcy.  The following rules apply to discharge taxes in a chapter 13 bankruptcy:

• It must be at least three years from the due date to file the return including extensions.
• The tax from the return must have been assessed at least two years ago.
• Any additional assessments after filing the return must have occurred at least 240 days ago.
• Tax return was not fraudulently filed.

After we have determined that your taxes are dischargeable in a chapter 13 bankruptcy we will refer you to an attorney who specializes in tax bankruptcy so that you can properly compare the pros and cons of each settlement option.