Are IRS debts forgiven when you file bankruptcy?

Question

I have a friend who is considering filing bankruptcy and wants to know if IRS debts will be included. How does this work.

Answer 1

Back taxes, child support, and student loans cannot be filed in a bankruptcy. Those are payments that you are stuck with!

Answer 2

Forgiven is not the right word.  Try for discharged.

Income tax that has been due for over three years--this means tax years 2004 and prior--will be discharged if the debtor filed a return over two years ago and the tax due has been billed for at least 240 days. If a Notice of Federal Tax Lien has been filed, the discharge will not apply to exempt or abandoned assets.

Answer 3

Generally no, nor are defaulted student loans of child support.  Under some circumstances, very old back taxes can be discharged through bankrupcy - but figure that whatever you own will be seized, so don't think you can for example you'd  be able to exclude your house or car from the bankrupcy if you are trying to include old back taxes.

Answer 4

There are certain things that cannot be included in bankruptcy IRS debts are one of those. Your friend will still owe the IRS even if he files for bankruptcy.

Answer 5

No, IRS debts, child support, and student loans are not forgiven in bankruptcy.

Answer 6

Yes, if your tax debt qualifies, it can be discharged.  The debt must be at least 3 years old and have other qualifications.

If your BK attorney cannot tell you those, then get another one.  

Helen, EA in PA

Emma, Mame and Amanda are all incorrect.  Taxes and even student loans can be discharged in BK.