Legal Question in Bankruptcy in Indiana

Re: bankruptsy/irs

Yes. Income tax liabilities are dischargeable if they are more than 3 years old if you filed on time or 2 years old if you filed late. For income taxes that don't meet those requirements, chapter 13 allows you to wipe out the interest and penalties portion (which is usually a large portion) and pay just the tax over the course of the plan. While not the ideal choice, its still isnt a bad second choice. Trust Fund Penalty Taxes are never dischargeable as they are fiduciary taxes.

For more info on discharging tax liabilities, you can check out my web site www.mh-in.com the FAQs should help answer the majorty of your questions. Feel free to call or email me anytime. I'm always available.