Recorvery Rebate Credit
Mileage Deductions
Car Donation Deductions
Bad Debt Right Off
Hybrid Cars Deductions
Tax Cash Today at Western Union
CPA Moms - Services Offered
Tax Preparation
Electronic Filing
Enrolled Agents
Tax Moms
Recovery Rebate Credit
CPA Moms
Representation before IRS
Non Profit Tax Services
CPA Loan Letter
$7500 Downpayment for your Home
Bankruptcy Home Page
Lastest Bankruptcy News
Bankruptcy Articles
Additional Resources
Want to Join CPA Moms?
Questions for CPA Moms?

Death & Taxes

We have Information to Help You with Either


Income Taxes and Bankruptcy

It is a common misunderstanding that bankruptcy cannot eliminate any tax liability. Although treatment of tax liability is one of the most complicated aspects of consumer bankruptcy law, the Bankruptcy Code does offer many debtors substantial income tax relief. Whether or not your bankruptcy filing relieves your tax debt depends on several factors including the nature and the status of tax liability and the type of bankruptcy proceeding.

In general,  unsecured income taxes that were first due more than three years before the bankruptcy is filed, for which a timely and non fraudulent return was filed, can be discharged in full in any chapter of bankruptcy.

Dischargeable taxes are eliminated in Chapter 7 and are treated as general, unsecured creditors in Chapter 13.   Secured tax liens cannot be discharged in Chapter 7. The secured portion of tax liability must be paid during a Chapter 13, in full and with interest, but without further penalty.

Only individuals, not businesses, can be wiped out, certain taxes through bankruptcy.  The only tax eligible for discharge is federal income tax.

IRS has the power to file a tax lien to make its tax claim against individualís property.  A tax lien, once filed, becomes a secured lien on all of the taxpayerís property. If a tax lien is in place prior to your filing bankruptcy, the IRSís secured tax lien has priority over the bankruptcy filing, and bankruptcy cannot dislodge the lien from the your property. Even property which would otherwise be exempt in a bankruptcy, such as homestead, cannot be sold or transferred without payment of the IRS tax lien. In this instance, bankruptcy provides no tax relief.

Bankruptcy law does not require that you hire an attorney to prepare a bankruptcy petition or to represent you in your bankruptcy case.   However, bankruptcy is a complicated area of the law, and the bankruptcy law gives no special treatment to debtors who file their own petition. The new bankruptcy law makes filing bankruptcy substantially more complicated and the practice of bankruptcy law is therefore more specialized.  CPA Moms astrongly believe that the financial risk of filing your bankruptcy incorrectly is much greater than the amount of a reasonable fee paid to a bankruptcy attorney

Disclamer: On the pages of this web site you will find articles and news items about bankruptcy.  This information was collected from many independent sources.  The opinions expressed by each source is their opinion and is not necessarily the opinion of the CPA Moms.  Each article or news item offers a different point of view and the source of each.   This information is for general information only.  If you want a specific opinion, please contact CPA Moms


Featured Articles


  • Bankruptcy And Real Estate Investing
    Bankruptcy can be a frightening word to a lot of people. Many people assume that if you file for bankruptcy and it is on your credit report and score then investing in real estate is just a pipe dream....
  • Real Estate Bankruptcy
    Although real estate bankruptcy cases no longer dominate the bankruptcy courts' dockets as they did in the early nineties, but they continue to be filed with great frequency in UK. At its essence, the...
  • Purchasing Real Estate Out of Bankruptcy Cases
    An often overlooked area for buying distressed real estate is purchasing properties in the United States Federal Bankruptcy Court. Most seminars and web sites that deal with distressed real estate teach...
  • Car Loan After Bankruptcy: Qualifying & Saving Money
    If you are planning to apply for a car loan after bankruptcy, there are two key items you need to focus on:1) Increasing your chances of qualifying for a car loan after bankruptcy2) Reducing the interest...
  • Know some benefits of bankruptcy
    Bankruptcy is a state of a person or a firm unable to pay off the debts. In legal terms, bankruptcy refers to the settlement of liabilities of a person/organization, fully or in parts, who are in a state...
  • New Bankruptcy Law - Five Essential Things to Know
    Last April, Congress passed the Bankruptcy Abuse and Consumer Protection Act, the most sweeping reform of our nation's bankruptcy laws in more than twenty-five years. Proponents of the bill argue that...
  • Chapter 13 Bankruptcy
    Also called reorganization bankruptcy, Chapter 13 allows debtors to keep most of their assets and make arrangements to repay the debts, sometimes for less than what is still owed. You and your lawyer...
  • Bankruptcy law and how to get your credit back.
    Personal Bankruptcy what is it?Personal Bankruptcy is legal procedures that enables a debtor to for the time being or lastingly avoid paying some of their personal debt unpaid. The US Congress enacted...
  • How to obtain mortgage after bankruptcy
    Most people probably assume that obtaining a mortgage to after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services. Even if you made the mistake of shoring...
  • Bankruptcy
    For the average person that is suffering through mounds of debt, filing for bankruptcy is the only apparent way out. It seems like the easiest way to handle the load. The fact of the matter is, when a...
  • Is Bankruptcy The Right Way To Go? You Decide
    There are 2 sides to the changes in bankruptcy rules.It will be a lot harder to file bankruptcy under chapter 7 and get a totally clean slate.For businesses, relying on issuing credit, the new personal...
  • What is Bankruptcy
    Here is a useful guide to bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice.Bankruptcy is seen as the last resort. Bankruptcy is perceived...
  • Get a Free Bankruptcy Form Online
    If you want to file bankruptcy on your own, you can. You just need to make sure that you get the right bankruptcy form. There are a lot of different places where you can get a bankruptcy form - including...
  • Stopping Foreclosure with Bankruptcy
    Bankruptcy Will Stop Your Sale - At Least For NowFor $395, you can stop your sale- at least that is what the ads say. You are about to find out how bankruptcy can be good or very damaging.Bankruptcy will...




Privacy Policy ......... About Us  ......  Disclaimer ..... Copywrited 2005 - 2006 & Developed by  CPA Moms