Tax Discharges in Chapter 7

A common question about filing for Chapter 7 bankruptcy concerns whether certain taxes can be discharged in the process. This is indeed possible in certain situations, but because bankruptcy cases can vary so greatly, it is highly recommended to work with an experienced bankruptcy attorney to fully understand which of your debts are dischargeable and which are not.In Chapter 7, certain taxes are dischargeable based on the following criteria:- They are related to a return due three or more years prior to filing;- The return in question was filed two or more years prior to filing;- The taxes were not assessed within 240 days prior to filing;- The return was not “frivolous” or “fraudulent;”- And the debtor has not been found guilty of tax evasion of any kind.Some taxes which do not meet these criteria may still be dischargeable provided that the events which resulted in penalties occurred three or more years prior to filing.If you are struggling financially and considering filing for Chapter 7 bankruptcy, you’re not alone. Contact an experienced bankruptcy attorney today for a free consultation.