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Conditional Tax Relief in Chapter 7

Michael Agruss

Written and Reviewed by Michael Agruss

  • Managing Partner and Personal Injury Lawyer at Mike Agruss Law.
  • Over 20 years of experience in Personal Injury.
  • Over 8000+ consumer rights cases settled.
  • Graduated from the University of Illinois Chicago School of Law: Juris Doctor, 2004.

While many tax debts are not dischargeable in bankruptcy, in certain Chapter 7 bankruptcy cases you may be able to eliminate some state tax debts and IRS debts. However, proper timing and the assistance of an attorney are essential to maximize your tax relief, and filing at the wrong time can be extremely costly in the long run.Certain tax debts may be dischargeable in Chapter 7 under the following criteria:- You were not engaged in tax evasion or fraud;- The tax debt is at least three years old;- You filed returns for the taxes in question at least two years ago;- The tax assessment was made at least 240 days ago (about eight months).When you file for bankruptcy, your interest and penalties on tax debts from the IRS will stop accumulating in an “automatic stay,” and you will have time to start on a new path to financial freedom.If you are struggling financially and considering filing for Chapter 7 bankruptcy, contact an experienced bankruptcy attorney today for a free consultation.

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