Taxes

Categories: Chapter 7

Debts that you discharge through bankruptcy have no tax consequences. Specifically under current law, the amount discharged is not to be treated as income. See 26 U.S.C. § 108(a)(1)(A)

Categories: Chapter 7

Taxes are the debts that are most frequently nondischargeable in bankruptcy cases. The dischargeability of taxes can be complicated. In a Chapter 7, you are able to discharge certain personal federal and/or state income taxes if you meet the following criteria:

How are discharged debts treated for tax purposes?

Can I discharge my federal and/or state income taxes?