Do taxes always have to be paid back after filing for bankruptcy?

Do taxes always have to be paid back after filing for bankruptcy?

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Min Austria
Assistant at Ascent Law LLC

The answer to this question is no, taxes do not have to be paid back after filing bankruptcy. The most common form of bankruptcy, Chapter 7 Bankruptcy, which is a liquidation bankruptcy, does in fact discharge your tax debt as long as you are able to pay off the secured debts with the amount of equity in your home. A home is considered a secured debt if you are using it as collateral for a loan. If you do not have any secured debt then the bankruptcy will not discharge your taxes and you will still need to pay them back. A lot of people think that when they file for bankruptcy, they will have to pay back all the taxes they owe. This isn't actually true. There are two things to take into consideration. First, you only have to file your taxes if you make more than $10,000 a year. Second, if you make less than $10,000 a year and you do file your taxes, you can pay back your taxes once every six months; this is referred to as an installment agreement.

If you need a Taxes and Bankruptcy Lawyer, please call this law firm for a free consultation.

Ascent Law LLC

8833 S Redwood Road Suite C

West Jordan UT 84088

(801) 676-5506

Utah Lawyer for Divorce Business Bankruptcy Probate Estates
Ascent Law helps you in divorce, bankruptcy, probate, business or criminal cases in Utah, call 801-676-5506 for a free consultation today. We want to help you.
https://www.ascentlawfirm.com/

Location: South Jordan, UT, USA

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