Can You File Bankruptcy If You Owe Taxes?
Yes, you can still file bankruptcy if you owe taxes. You will need to get your tax returns filed, but paying the taxes is not required before you can file bankruptcy. Certain income taxes can be discharged. A chapter 13 plan can allow you up to five years to repay the taxes you owe. Taxes are a priority debt in bankruptcy, but you can still file if you owe taxes. The types of taxes owed and the equity in your home will be factors that determine how your taxes are addressed in bankruptcy.
Contact the Law Offices of James C. Zimmermann to learn more.