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Yes, both Federal & State taxes pay for debt that is discharged in BK

And yes, lenders "eat" the loss too. And as seen in the bank and investment and insurance, etc industry failures recently, from the mortgages the lenders had to "eat", normal people pay for it oo with the loss of their savings, investments, retirements, homes, jobs, etc. And of course, society itself deteriorates - or shows its deterioration - by having so many members that will not hold to their solemn promises or obligations to reapy what they took from others...trying to amke what is theivery and greed perfectly OK.

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Q: Do federal or state taxes pay for debt that is discharged in bankruptcy or do the lenders just eat the loss?
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Related questions

Can you file bankruptcy on the IRS in Washington state?

No. Federal taxes may not be discharged regardless of which state the bankruptcy is filed.


If you are a landholder on a home and the person files bankruptcy will they be able to include the debt they owe you into the bankruptcy?

They can include it, but the creditor/landholder can file a relief of stay to have the debt excluded from being discharged in the bankruptcy. The decision of what debts are to be discharged are determined by state and/or federal law and the bankruptcy judge.


Can judgments be discharged in bankruptcy?

Perhaps, many judgments can be discharged in bankruptcy. The ones which are allowable are determined by state and/or federal laws, depending on the type of bankruptcy chosen. Understanding that if it gets removed it is because it was included and settled/discharged as part of the BK, generally by using the asset it is secured to, or other assets...it isn't just file BK and the lien/debt goes away.


Is a car loan discharged under chapter 7 bankruptcy?

Whether your car loan is discharged by a bankruptcy or not will depend on your state and the equity in your car. Whether the loan will be discharged or not is called an "exemption".


Can monies owed to the state of Maryland but not taxes be discharged in bankruptcy?

To be certain of the status of such debt you should check the state statutes if filing a state bankruptcy. If it is a Federal filing, debts owed to any state department or affiliate is only dischargeable in relation to the type of debt and when it was was incurred.


If bk was discharged in ill can you file for bk in Indiana?

No...until the time to file has passed. You didn't file in a State...you should have noticed it was a FEDERAL court that handles bankruptcy.....state is irrelveant


If an executor of a will waits six months after a bankruptcy to give the bankrupt his inheritance is it safe from the trustee?

Maybe. It depends upon the type of bankruptcy that was filed (state or federal) and the time the bankruptcy petitioner actually was awarded the inheritance, not accepted it. A bankruptcy case is officially finished when it is closed, not discharged.


How do you have lien removed from property after bankruptcy and person has died?

If the lien is a mortgage or a tax lien, the bankruptcy may not have discharged the debt, and the estate would have to be probated. The estate may be bankrupt, and there is usually a state procedure for estate bankruptcy. Federal bankruptcy does not apply. Consult a local attorney experienced in estates.


How do you remove liens on property that was transferred for no consideration before the judgment was executed when the debts were included in bankruptcy?

The person wishing to take the action needs to be certain that the debts were actually discharged in the bankruptcy before he or she can take any steps to have the liens lifted. The other issue would be if the property was legally transferred according to the federal or state bankruptcy laws or if it is being challenged as a fraudulent conveyance. If the BK has not been discharged and in most cases closed as well then the liens may still be valid. The best option is to consult with an attorney who is knowledgeable in federal and state bankruptcy matters.


Does your bankruptcy affect a mortgage still held in both your names even though you are divorced?

Yes. You need to consult with a bankruptcy attorney who can explain the consequences under federal and state laws.Yes. You need to consult with a bankruptcy attorney who can explain the consequences under federal and state laws.Yes. You need to consult with a bankruptcy attorney who can explain the consequences under federal and state laws.Yes. You need to consult with a bankruptcy attorney who can explain the consequences under federal and state laws.


If a spouse files for bankruptcy in a community property state and debts are discharged can the other spouse be held responsible for the discharged amounts?

Maybe; see a lawyer.


What a bankruptcy laws regulating by?

The federal government and the state