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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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will filing for bankruptcy settle a debt owed to the State

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will filing for bankruptcy settle a debt owed to the State of California?

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.


 

WALLSTREETESQ :

If this is tax debt it is possible that you can discharge the debt through bankruptcy.


 

WALLSTREETESQ :

There are several prerequisites that must be met before any tax can be discharged in bankruptcy. The minimum requirements for discharging federal or state income taxes are (all of the following must be met): (1) it has been more than 3 years since the returns were last DUE (including extensions) to be filed, (2) the returns were timely filed or it has been at least 2 years since the returns were filed, (3) there was no fraud involved or attempts to evade the tax, AND, (4) the taxes were not assessed within the last 240 days.


However, even if you cannot get rid of your tax debt fully in a Chapter 7 bankruptcy case, you may be able to discharge some of it, and enter into a more favorable repayment plan for the taxes than you otherwise could outside of bankruptcy in a Chapter 13 or Chapter 11 case.

Under the Federal bankruptcy law, in a Chapter 7 case,

Only the following cannot be discharged in most cases:



Student loans
Alimony and child support (domestic support obligations)
Debts obtained through fraud, false pretenses or false representation
Debts you failed to schedule in time to allow creditors to file proofs of claim (unscheduled debts)
Debts for fraud while you were acting in a fiduciary capacity, or for embezzlement or larceny
Debts for willful and malicious injury
Debts for fines or penalties to governmental units
Debts for judgments in wrongful death or personal injury lawsuits resulting from motor vehicle, vessel or aircraft accidents while you were intoxicated
Condominium or cooperative association fees or assessments
Chapter 13 Nondischargeable Debts

If your bankruptcy case is under Chapter 13, you won't be discharged from the following types of debts:
Child support and alimony (domestic support obligations)
Student loans
Fines and restitution
Certain taxes, such as withholding taxes if you had employees, or taxes connected to fraudulent tax returns or tax evasion
Debts incurred through fraud
Debts for fraud while you were acting in a fiduciary capacity, or for embezzlement or larceny
Debts for willful and malicious injury
Judgments in wrongful death or personal injury cases arising from your intoxication
Unscheduled debts
Debts incurred after filing your case, which weren't included in your Chapter 13 plan
Debts that are nondischargeable under other laws, for example amounts owed for certain health education programs
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you