June 26, 2015
There are certain categories of debt that cannot normally be discharged in a Chapter 7 bankruptcy case. Among these is a liability for income taxes owed to the IRS or to the State, which can create significant difficulties for individuals who find they need protection under the Bankruptcy Code.
In certain circumstances, income taxes may be dischargeable, but it can be complicated to determine if your taxes may be discharged without a qualified bankruptcy attorney to assist you. The Bankruptcy Code identifies the types of income tax debts that are not dischargeable by referencing the section of the Code related to debt priorities, and there the Code lays out a number of criteria to apply to determine if a debt would qualify for discharge.