I had heard from a number of different outlets that I can get rid of a lot of my tax debts simply by going through a bankruptcy. However, I am now checking further and I am a little bit confused as to how all of it works and I’m not sure if it is going to be as simple as it sounds.
Even though there are some commercials that you may have on television or the radio about wiping out tax debts with a bankruptcy, the truth is that I have learned that many are not able to be removed. You end up owing them at the end of a case known as a Chapter 7. Or, if you go with a Chapter 13, you will have to pay them all back in fully when you go through the repayment plan.
These are income taxes, and there are some taxes that you can never get rid of with a bankruptcy, including your payroll taxes, any fraud penalties or any other taxes that are other than income taxes. If you are going through something like this, I would suggest that a lawyer is secured that will be able to help you navigate the entire process.