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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2820
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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If you file bankruptcy. And you owe sales tax when ur business

Customer Question

If you file bankruptcy. And you owe sales tax when ur business folds can that be included or what happens. Thanks
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 3 years ago.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Unfortunately, sales taxes are not dischargeable in bankruptcy.

Terry L. :

The only tax that is dischargeable, is income tax to the debtor, but only if the tax is at least 3 yrs old, filed timely and accurately at least 2 years before the bankruptcy, and the tax must not have been assessed in the last 240 days.

Terry L. :

Sales tax must be repaid. so if the debtor is filing chapter 13 -this will be paid 100% in the plan. If chapter 7, the debtor will need to work out a repayment plan with the taxing agency.

Terry L. :

Do you have any other questions?

Terry L. :

Thanks

Terry L. :

It seems that you are away.

Terry L. :

If you do have more questions, reply and I'll respond.

Terry L. :

THanks

Terry L. :

Terry

Terry L. :

hi

Terry L. :

did you have a question

Terry L. :

If you have any questions, let me know. otherwise best of luck to you!

Terry L. :

Terry

Terry L. : did you have any followup questions?Otherwise, please click accept to close the question
Terry L. : thanks
Terry L. : Terry
Customer : Sorry thought i had asked this !
Customer : If you Make arrangement to pay sales Do u get a criminal record because they class it as a felon?