Tax debt, IRS, Federal vs. State, are there any scenarios where these are covered?

In bankruptcy there are different categories of debt, different types of debt, secure debt is cars and houses. Unsecured debt is things like credit cards and personal loans and things that, there’s no specific property attached to. One of those types of unsecured debt is tax debt priority tax debt and what makes it priority is that it’s recent tax debt. Generally speaking, if that tax is from one of the last three tax returns that you were supposed to file, then it has to be paid. Government writes the rules government’s gonna win, but if it’s older than three years, then it’s no longer priority. It doesn’t have that special government status and old debt can go away the same as credit cards and medical bills and everything else.

x

FREE Case Evaluation