Saying Goodbye to Income Tax Debt in Bankruptcy
Sunday, January 24th, 2010It’s almost February and ‘tis the season for thinking about tax time—even more so if you find yourself considering the benefits of bankruptcy. So, if you believe you’re bankruptcy bound in 2010, in addition to trying to get your 2009 taxes filed in a timely manner, you may also be wondering whether you can discharge any income tax debt in your bankruptcy filing.
Well, it’s also time for insolvent taxpayers to take heart. When filing for bankruptcy a qualified attorney will compile a list of all of your debts, including credit cards, medical bills, car loans, mortgage debts, lawsuits and even information about stuff that you think you may owe, but for which creditors have yet to come calling. In this long list of potential debts and inferences of insolvency, the lawyer will also require information about your taxes, including any federal income taxes you may owe, along with income tax due to your state or to any other state where you may have lived.…