When you are navigating the bankruptcy process, it’s essential to understand the debts not dischargeable in bankruptcy. This includes recent taxes, unpaid domestic support, student loans, HOA assessments, and debts incurred by fraud.
A debtor may discharge taxes in bankruptcy under certain conditions. Bankruptcy can discharge some income taxes. Taxes such as payroll taxes, sales taxes, or property taxes are not dischargeable. Discharging taxes in bankruptcy is possible by meeting specific criteria and following certain procedures.
Only a competent Arizona bankruptcy lawyer can determine whether a debtor’s federal or state income taxes can be discharged in a Chapter 7 or Chapter 13. If the taxes are old enough and tax returns were timely filed, you may be in luck!