There are many different types of debt that we face as Americans, and none is more imposing than our annual tax bill from Uncle Sam. With so many Americans owing back taxes, the question often comes up – can you discharge tax debt through bankruptcy?
This is a question that you should definitely speak to an attorney about. In many cases, debts owed to the government can not be discharged through bankruptcy, but this is not always the case. Debts owed to the IRS can be some of the biggest debts that we face – missing a year or two of taxes can quickly amount to a an overwhelming portion of your annual salary.
In some instances your attorney may be able to help you discharge this debt, depending on how old the debts are, whether you have entered into a payment plan, and where you live. These and many other factors will determine whether or not you can discharge tax debt in your bankruptcy. Because this issue is so complicated, only a local attorney will be able to give you a clear answer. However, know that there are some cases where some of your IRS debt may be eligible to be discharged.