Bankruptcy permanently writes off income taxes, as long as the tax meets certain conditions. For some taxes the conditions are easy to meet.
Chapter 13 is a riskier, longer, and maybe more expensive way to escape a dischargeable income tax deb--but may still be your best option.
Filing bankruptcy stops tax collection just like it stops other debt collection by more conventional creditors. But there are exceptions.
Filing Chapter 7 bankruptcy stops an IRS/state garnishment and other collection activities, even if it's for a tax you still have to pay.
Usually you can discharge--write off--an income tax debt by just waiting long enough. Here's how to discharge a tax debt under Chapter 7.
What does the completion of a successful Chapter 7 "straight bankruptcy" case look like? What happens to your debts?
Bankruptcy DOES discharge--permanently write off--certain income taxes. It's mostly just a matter of time.
As of January 1, 2016 you can include any taxes you owe for the 2015 tax year in your Chapter 13 payment plan.
With Chapter 13 you may have to pay some part of the taxes that you could just discharge under Chapter 7, but it may be worth it.
During the first months of 2016 your bankruptcy can write off more of your tax debts.
If you owe more than 1 year of income taxes, some may be dischargeable and some may not. What happens if you owe both kinds?
Income tax debts that can't be written off must be paid, either after a Chapter 7 case or during a Chapter 13 one.
Income tax debts can be written off when meeting certain conditions, mostly by being old enough. Here's what happens in Chapter 7 and 13.
Start by assuming that debts are written off in bankruptcy, while knowing that there are some important exceptions that may apply to you.
If you owe back taxes, bankruptcy can help, in many unexpected and powerful ways.