Legal Question in Bankruptcy in New York

Re: IRS Debt and Student Loans

It is very possible to get back taxes, especially very old back taxes, discharged in bankruptcy.

Student loans are very, very difficult to get discharged. You basically have to be permanently and totally disabled, completely unable to ever earn any money at all, to get those to go away in bankruptcy.

ALL DEBTS MUST BE LISTED IN YOUR PETITION. That there may be difficulty about discharging them is NOT a reason to omit them from the petition.

Do NOT attempt to navigate the black and treacherous waters of a bankruptcy petition without good legal help; the 2005 Bankrutpcy Abuse Prevention Act, which is the law of the land now, is fraught with perils for the unwary that can result in your petition being dismissed in such a way that you can never re-file it and will therefore never be able to receive bankruptcy protection for those listed debts. A LAWYER IS WORTH EVERY PENNY YOU WILL PAY TO HIM OR HER. If your income is low enough to fit within their guidelines, Legal Aid offers good, free or reduced-fee legal help. There's a Legal Aid office in every county in NYState; find them in the Yellow Pages or online.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: IRS Debt and Student Loans

Debts for income taxes can be discharged if over three years have passed since the tax return was filed. If you did not file a return, the taxes are not dischargeable. To have taxes discharged, it is necessary to bring an adversary proceeding after your petition is filed. An adversary proceeding is a lawsuit within bankruptcy court. In this case, the action would be brought against the IRS for a determination that the taxes are dischargeable. If the taxes meet the criteria for dischargeability, there is usually no opposition. Please contact my office directly if you would like further information.