Can I claim an IRS debt on my bankruptcy?

Q: Can IRS debt be included in debt consolidation?

IRS debt can sometimes be included in debt consolidation, but it depends on the type of consolidation you choose. Some programs may not accept tax debts, while others may. It's crucial to discuss your options with a financial advisor or attorney to ensure that your IRS debt can be effectively managed in a consolidation plan.

Q: Can you include IRS debt in bankruptcy?

You may be able to include IRS debt in bankruptcy under certain conditions. The tax debt must be at least three years old, filed on time, and assessed by the IRS at least 240 days before your bankruptcy filing. If these criteria are met, the debt may be discharged in bankruptcy.

Q: Does chapter 11 wipe out IRS debt?

Chapter 11 bankruptcy can potentially wipe out IRS debt if it meets the necessary criteria for discharge. However, the process is complex, and not all tax debts are eligible for discharge. It's advisable to consult with a bankruptcy attorney to understand how Chapter 11 may apply to your IRS debt.

Full question:

Can I claim an IRS debt on my bankruptcy?

Category: Bankruptcy
Date: 04/07/2025
State: Alabama

Answer:

Please see the information at the following links:

http://www.lectlaw.com/files/bnk07.htm

http://www.msanderson.com/Bankruptcy-Tax-Related.html

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Are IRS liens dischargeable in bankruptcy?

IRS liens are generally not dischargeable in bankruptcy. While you may discharge certain IRS debts under specific conditions, the lien itself remains attached to your property. This means that even if the underlying tax debt is discharged, the IRS can still enforce the lien until it is formally released. It's important to consult with a bankruptcy attorney to understand your options regarding IRS liens.

Can IRS liens be included in bankruptcy?

IRS liens cannot be included in bankruptcy as a dischargeable debt. While you may be able to discharge the underlying tax debt, the lien itself will remain in effect until it is resolved. This means you may still face challenges related to the lien on your property even after bankruptcy. Legal advice is recommended for navigating these issues.

Can bankruptcy clear government debt?

Bankruptcy can clear certain types of government debt, including some tax debts if they meet specific criteria. However, not all government debts are dischargeable. For example, student loans and certain fines or penalties are typically non-dischargeable. It's essential to review your specific situation with a bankruptcy attorney to determine what can be cleared.