Ch. 7 Bankruptcy and Tax Debt

by DeLadurantey Law Office, LLC on July 28, 2011

One of the many ways that an individual can fall into financial difficulties is incurring large amounts of tax debt. These debts can be more intimidating than other forms of debt because failure to pay is a criminal offense along with the other problems associated with carrying large amounts of debt. However, an individual may be able to erase some or all of his or her tax burden by filing for Ch. 7 bankruptcy protection.

Eligibility for Tax Debt Forgiveness

Not everyone is able to have their tax debt forgiven under Ch. 7 bankruptcy. In order to qualify, an individual must first meet the following criteria:

  • The due date for the tax return on which the debt was incurred must be at least three years old
  • The return must have been filed at least two years ago
  • The return must have been assessed by the IRS at least 240 days before filing
  • The tax return contained no fraudulent information or any attempts to evade taxes
  • Only income tax debts may be discharged through bankruptcy

These guidelines provide a basic explanation of the requirements that must be met before tax debt can be forgiven under Ch. 7 bankruptcy.

If you have significant tax debt or other financial obligations which you cannot meet, an experienced legal professional may be able to help you find your way back to financial freedom. Contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, at 414-377-0518 today to learn more about your options under the law.

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