Many people mistakenly believe that income taxes can not be discharged in a bankruptcy. But the bankruptcy code allows a debtor to eliminate his or her income tax debts if the requisite elements have been satisfied.
1) There must not be willful evasion or fraud.
2) Tax debt must be at least three years old.
3) Tax return was filed at least two years prior to your bankruptcy filing.
4) The tax debt must not have been assessed within 240 days prior to your bankruptcy filing.
By meeting these requirements, you are able to discharge your income tax obligations and the IRS will not be able to freeze your bank accounts or garnish your wages. However, keep in mind that a bankruptcy will not eliminate a federal tax lien once it has attached to your assets.
Depending on your unique situation, a Chapter 7 bankruptcy or a Chapter 13 bankruptcy can be used to discharge your income taxes.
Consult with an experienced Chapter 7 or Chapter 13 Los Angeles bankruptcy lawyer at Sky Law Group today!
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