Is it possible to discharge IRS or State of California taxes in a bankruptcy?
Yes, but it depends upon the kind of tax and the type of bankruptcy proceeding. Federal and State income taxes may be discharged in a Chapter 7 bankruptcy if certain time limitations have been met for each tax year in issue. However, the tax cannot be due to a fraudulent tax return and the taxpayer must not have attempted to evade or defeat the tax. Unsecured, non-priority taxes may be discharged in a Chapter 13 bankruptcy by payment of a percentage of the tax over a period of three to five years. Some taxes that are non-dischargeable in a Chapter 7 proceeding may be discharged in a Chapter 13 under its “super discharge” provisions if all requirements are met. 5. How long does a bankruptcy remain on my credit record? Each credit reporting agency has its own policies on how long a bankruptcy will remain on a person’s credit report. However, generally speaking, most credit reporting agencies do not remove a bankruptcy filing from a credit report for ten (10) years. Nevertheless, most peo
