Depending on the situation, tax debt may be eligible for discharge through bankruptcy. At the very least, the debt can be made more manageable through a Chapter 13 repayment plan. To discharge tax debt, the following conditions must be met:

• A filing due date of at least 3 years previous
• A tax return filing date of at least 2 years previous
• A tax assessment completed at least 240 days previous
• No fraud committed on the tax return
• No tax evasion committed by the payer
• Debt must be from a filed return

We hear this concern a lot, but it is actually a misconception. While your credit report will show that you filed for bankruptcy for 10 years, you will still be able to take out a loan to purchase a home or car during this time. You may also find that you receive credit card offers in the mail as soon as you file, because credit card companies now know your previous debts are discharged and you will be in a position to pay back what you owe in the future.

With Chapter 7, you must wait eight years between filings. Additionally, if you file for Chapter 13 within 4 years of filing for Chapter 7 and receiving a discharge, you will not be able to get a discharge through your Chapter 13 filing. However, you will always be able to receive protection from creditors through Chapter 13 no matter when you file.

No, it won’t. It is, in fact, against the law for an employer to discriminate because of an based on an employee’s decision to file for bankruptcy.

You do not need to have a minimum amount of debt to be eligible to file for bankruptcy.   

While you may find it hard to rebuild your credit after filing for bankruptcy, you can do it. Even after filing for bankruptcy, you may find that you receive credit card offers and you should be able to take out loans to purchase a home or car. Attorney Michael Burr is a great partner to have on your journey to rebuilding your financial life. Give Burr Law Offices a all today!