Are Taxes Dischargeable?

Whether taxes are dischargeable (i.e. you can get rid of taxes in a bankruptcy) depends on what type of tax it is and how long it has been owed for. Sometimes you can discharge taxes and sometimes you can’t. It will depend upon how old the tax is, and what type of tax it is.

Interviewer: Would this apply to income taxes?

John Reade: You can get rid of income taxes if you satisfy certain requirements.

You Can Only Discharge A Student Loan If A Bankruptcy Judge Agrees It Would Impose An Undue Hardship, If You Were Required To Pay Bank The Student Loan(s)

Interviewer: What about student loans?

John Reade: You can only discharge a student loan(s) if you can prove to a bankruptcy judge, at a hearing, that they would impose an undue financial hardship on you to repay them. If one is successful in convincing the judge, that person can have the court discharge some or all of their student loan(s). And if you can not convince the judge, then you will not be able to discharge the student loan(s).

You Can Discharge Judgments. You Can Not Discharge Child Support and Spousal Support.

Interviewer: What about a judgment against you, or a wage garnishment, or past due child support?

John Reade: A person filing for bankruptcy can usually discharge their personal obligation to pay a judgment. However, when a person has a judgment against you, and you own real property, then there will probably be a judgment lien against your real property, or home. Sometimes you can get rid of a judgment lien against your home, or have it taken off by a procedure called, “a motion to avoid a lien”.

Whether you can get a judgment lien taken off of your home will depend on how much equity you have in your home.

Child support, spousal support, and any money owed to an ex-spouse as a result of a divorce will not be dischargeable in a bankruptcy.

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