{"id":25037,"date":"2017-06-21T00:00:00","date_gmt":"2017-06-21T00:00:00","guid":{"rendered":"https:\/\/getirshelp.com\/blog\/bankruptcy-tax-debt\/"},"modified":"2026-07-27T15:23:30","modified_gmt":"2026-07-27T15:23:30","slug":"bankruptcy-tax-debt","status":"publish","type":"post","link":"https:\/\/getirshelp.com\/blog\/bankruptcy-tax-debt\/","title":{"rendered":"Bankruptcy Tax Debt – Is it Possible?"},"content":{"rendered":"

I hear from people every week who think their tax problem is the end of the world. It usually isn't. I'm Darrin Mish. I've resolved over $100 million in tax debt for clients. Here's what you should know.<\/p>\n

The fact that you’re looking for Bankruptcy Tax Debt Answers<\/a><\/strong> tells me you’re not buying into the myth that your tax liabilities can’t be discharged by filing for bankruptcy<\/strong><\/a>.<\/p>\n

That’s a good thing.<\/p>\n

It’s\u00a0something<\/strong><\/a>\u00a0I hear repeated by my clients all the time when they meet with me the first time.<\/p>\n

\"Hand<\/a><\/strong><\/p>\n

It’s been a problem gated by the IRS and Congress and bankruptcy attorneys for a real long time. <\/a><\/strong>But there are actually some ways you can discharge income taxes and bankruptcy<\/strong><\/a>. So there is a chance that the\u00a0chapter 7 federal income tax answers\u00a0you find will be music to your ears.<\/p>\n

Notice I mentioned income taxes and not payroll taxes?<\/strong>
\nPayroll taxes<\/strong><\/a> cannot be discharged in a bankruptcy.<\/p>\n

Note:\u00a0I only have space on this page to discuss Chapter 7 Bankruptcy.<\/a><\/strong> If you want information on Chapters 11, 12, and 13 you can reach me\u00a0toll-free at (888) 438-6474<\/strong>.<\/p>\n

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Want to learn more about how to solve your IRS problem? Go search my name “Darrin T. Mish” on Amazon and grab one of many of my books.<\/figcaption><\/figure>\n

What is Chapter Seven Bankruptcy?<\/h2>\n

Chapter Seven\u00a0liquidates your liabilities. Which means you have no liability remaining if all goes well in the proceedings.<\/p>\n

So, there’s also a chapter 13 repayment plan type of bankruptcy which is for consumers. Usually, you end up with a repayment plan which encompasses somewhere between a 36 – 60 month pay up time frame.<\/p>\n

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Make sure to catch my radio show, the IRS Solution Attorney, every Thursday morning at 9 AM Eastern on Tampa’s Money Talk 1010!<\/figcaption><\/figure>\n

So, you want to avoid being in Chapter 13 in regards to your tax liabilities\u00a0if you can. Why? Because you’ll end up paying a large sum of the back taxes you owe.<\/p>\n

It is quite common for bankruptcy lawyers to push their clients into a chapter 13. They make more money on them than they do Chapter Sevens.<\/p>\n

In my opinion, 90% of the bankruptcy lawyers in the United States don’t\u00a0know that Bankruptcy tax debt is possible.<\/p>\n

I find that rather disturbing but they, in fact, can, as I indicated.<\/p>\n

The Three Timing Rules for Discharging Bankruptcy Tax Debt Via a\u00a0Chapter Seven<\/h2>\n
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  1. Returns will have to be due including extensions for at least three years.<\/li>\n
  2. Returns will have to have been filed if they were filed late for at least two years.<\/li>\n
  3. The taxes must have been assessed for at least 240 days.<\/li>\n<\/ol>\n

    If you’re one day early, and you file a Chapter Seven\u00a0to try and discharge your tax liabilities, you lose. <\/strong><\/p>\n

    It’s important for you to know exactly when your taxes were assessed. Also,\u00a0it’s\u00a0important for an Experienced Tax Attorney<\/a><\/strong>\u00a0to analyze the situation for you.<\/p>\n

    There are a lot of tricks and traps<\/strong><\/a> to determine what the timing of the bankruptcy are applicable in your case.<\/p>\n

    There are several telling factors that can screw you up in whether\u00a0the time limits have elapsed or not.<\/strong><\/a><\/p>\n

    This is not the time to guess if you’re eligible for a discharge or not.<\/strong><\/a> It’s something you want to be certain of before you go ahead and attempt it.<\/p>\n

    If you have any questions, feel free to contact me at toll-free at (888) 438-6474 and we can set up a time to chat.<\/p>\n

    Enjoy the videos below!<\/p>\n

    Will a Federal Tax Lien Be Released in a Chapter 7 Bankruptcy<\/h3>\n