Can you Discharge Local, State or Federal Taxes in Bankruptcy?
If you have found yourself avoiding tax obligations for any reason, it is important to realize that you have options for relief. Chapter 7, Chapter 11, Chapter 13 and other debt relief options all provide for tax debt relief in some form. In general, overdue taxes that are more than three years old can be discharged or eliminated in bankruptcy, depending on factors unique to your case. In bankruptcy, all types of taxes to federal, state and local taxing authorities are subject to modification and repayment terms. In the hands of an experienced professional, all tax problems are solvable.