In some instances, tax debts may be discharged by filing for either Chapter 7 or 13 bankruptcy. Even if they cannot be discharged, paying off tax debt should be doable under a Chapter 13 repayment plan. In order to qualify for discharge, tax debts must meet the following criteria:

• The filing due date must be 3 years old or more
• The tax return needs to have been filed at least 2 years prior
• The tax assessment must be completed 240 days prior
• No fraud can have been committed on the tax return
• No tax evasion can have been committed
• The debt must be from a filed return

Many people think that filing for bankruptcy means you will become ineligible for credit. However, the opposite is actually true. While the bankruptcy will appear on your credit report for 10 years, you will actually be able to take out lines of credit to do things like purchase a home, get a car loan, or take out a credit card during that time. When you file for bankruptcy, you may start receiving offers from credit card companies because your debts have been discharged and you will be in a position to pay back what you owe in the future.

You can file for bankruptcy as many times as is necessary, but there are some restrictions. After filing Chapter 7 bankruptcy, you must wait eight years before filing for Chapter 7 again. If you file for Chapter 7 and receive a discharge, you will be ineligible for a subsequent discharge through Chapter 13 for four years. However, if you do file for Chapter 13 during this time, you will still receive protection from creditors.

It won’t, as it is against the law for an employer to discriminate against an employee based on his or her decision to file for bankruptcy.

There is no minimum amount of debt to be eligible for bankruptcy.

No, your credit won’t fail, but it will take a hit. It will take a while and may be challenging to rebuild your credit after filing, but it is possible. In the meantime, you will still receive credit card offers and be able to get a loan to purchase a home or car. Trust Attorney Michael Burr and the experts at Burr Law Office to not only help you file for bankruptcy, but to get you started on the road to financial wellness after filing.