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Debts are divided into two categories; dischargeable and nondischargeable. Dischargeable debts are those that the debtor is no longer personally liable to pay after the bankruptcy proceedings are concluded. Nondischargeable debts are those that are not canceled because of the bankruptcy proceedings. The debtor remains personally liable for their payment.

As a general rule, there is no discharge for you as an individual debtor at the termination of a bankruptcy case for the second and eighth priority taxes described earlier, or for taxes for which no return, a late return (filed within 2 years of the filing of the bankruptcy petition), or a fraudulent return was filed. However, claims against you for other taxes predating the bankruptcy petition by more than 3 years may be discharged. However, if the IRS has a lien on the debtor's property, this property may be seized to collect discharged tax debts.

Yes, taxes, any penalties along with or interest thereon are each given their own category and status in the BK and may be dismissed.

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Q: Does a bankruptcy 7 discharge state and federal tax liability?
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Related questions

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.


What do you do if you receive an inheritance a month after discharge and didn't know it was coming?

The disclosure of assets received after a BK discharge are determined by the type of bankruptcy filed; state, federal or combination thereof. A safe option would be to contact the BK trustee.


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.


Can you finance a car during filing of chapter 7 new york state?

Bankruptcy is a federal action in a federal court, whether in New York State or elsewhere. You cannot get a loan while in a Chapter 7. No creditor will lend to you until you have received your discharge.


What a bankruptcy laws regulating by?

The federal government and the state


If your Chapter 7 was dismissed and discharge recalled for failure to surrender non-exempt value can you file again before 6 years?

Possibly. It would depend on several things. For one whether or not the state you reside in allows Federal and/or State BK filings. Some states opted out of Federal bankruptcy. Persons considering bankruptcy should refer to the laws of their residential state.


What can you own when you go bankrupt?

If filing a federal bankruptcy, federal BK exemptions apply. If filing a state bankruptcy, the state's exemptions apply. A few states allow the debtor to choose either state or federal filing whichever is the most beneficial to the debtor. Bankruptcy Action, http://www.bankruptcyaction.com


If you had a tax offset will you still get a stimulus check?

Any stimulus payment will offset to a federal tax liability or other federal/state liability.


Do state supreme courts hear bankruptcy cases?

No. Bankruptcy cases go through Federal Bankruptcy Court, and are not part of the states' jurisdiction.


When filing bankruptcy can past child support be included?

No. Child support is not dischargeable in either federal or state bankruptcy.


Can you file bankruptcy twice in Michigan?

Bankruptcy is a Federal court and legal action. Your State makes little difference (albeit some federal district courts use the laws common to the States in their jurisdiction for some things in their rulings). * Bankruptcy laws were reformed in 2005 making the time limit between chapter 7 filings 8 years from the time of discharge and the time for filing a chapter 13 after a chapter 7 discharge 4 years.


Does bankruptcy fall under the federal courts or state courts?

ALWAYS a district court of the FEDERAL Bankruptcy Court system. The laws are Federal too, although, mainly to help conform to the local customs of the area that district court operates in, some provisions have State considerations.