Yes, it is possible to eliminate tax debt through bankruptcy, as long as certain conditions are met. In cases when the debt may not be discharged, a Chapter 13 bankruptcy filing and subsequent repayment plan will make the debt more manageable. Here are the conditions that must be met for a discharge of tax debt:

• A filing due date of at least 3 years old or more
• A tax return filed at least 2 years previously
• A tax assessment completed at least 240 days prior
• No fraud committed on the tax return
• No tax evasion committed
• Debt cannot be discharged if from an unfiled return

We often hear concerns that one’s bankruptcy will plummet after a bankruptcy filing. Don’t fear – you will still be eligible for credit to make purchases such as a home or car in the 10 years after you file. Be aware, though, that a bankruptcy filing will appear on your credit report for those 10 years. One thing that surprises people who file for bankruptcy is that they begin to receive offers from credit card companies once their debt is discharged. This is because a discharge of debt vastly improves one’s debt-to-income ratio and puts a person in a position to pay back future debts.

Yes, but there are some caveats. While you can file for Chapter 7 bankruptcy once every eight years, if you want to subsequently file for Chapter 13 bankruptcy within four years of filing for Chapter 7 and receiving a discharge, you will not be able to discharge your debts. You must wait more than four years after filing Chapter 7 to file Chapter 13 and receive a discharge. However, no matter when you file Chapter 13, you will still be eligible for protection from creditors.

No need to worry, as it is illegal for an employer to discriminate against their employees because they have filed for bankruptcy.

No, there are no limits or set amounts of debt required to file for bankruptcy.

It will not be ruined, but it will be affected. You will receive credit card offers and be eligible for credit to purchase a home or car, but it will take a while for you to rebuild your credit. But, don’t fear – Attorney Michael Burr can help you create a plan to build your credit back up after filing for bankruptcy.