Generally tax debts, student loans, child support and spousal maintenance are not dischargeable debts. Based on certain regulations / guidelines however, tax debts could be discharged in bankruptcy. In a Chapter 7 bankruptcy, eligible tax debt may be discharged upon the successful completion of your case. In a Chapter 13 bankruptcy, eligible tax debt will be paid off in the debtor's repayment plan, which may last 3 to 5 years.
How your tax debt may be affected will vary depending on several factors, including: the type of tax, the age of the tax, when you filed a tax return, and whether tax fraud or evasion was attempted. Chapter 7 and Chapter 13 bankruptcy will affect tax debt differently, and a Long Island bankruptcy attorney can help you understand these differences and whether your taxes can be addressed with bankruptcy in the first place.
Following are some of the factors that should be considered if you are interested in addressing tax debt with a Long Island bankruptcy case:
To find out more about taxes and bankruptcy in Long Island and how an attorney can help you with this situation, contact a Long Island bankruptcy lawyer at our law offices. We can help you understand your legal options in this important matter.