Legal Question in Bankruptcy in North Carolina

Chapter 13 bankruptcy was closed without being discharged. Now the state is coming after me for the taxes that were in the bankruptcy.The state said they are trying to collect now because the bankruptcy was not discharged. If I reopen the bankruptcy and get the discharge will that take care of the taxes. Or would I be better off just paying the taxes. Its about the same price.


Asked on 12/21/11, 5:48 am

1 Answer from Attorneys
Thomas Zimmerman Zimmerman Law Office

Only income taxes for which the returns have been filed for a period in excess of 3 years are discharged in bankruptcy. Chapter 13 offers the advantage to limit interest and penalties from the time of filing. Chapter 13 and taxes are circumstance which requires a lawyer to advise you as to the specifics of your situation. With the case closed, it would seem unlikely that the court would allow you to reopen, you may have to file a new petition. You may be better off just paying the taxes, it depends upon your entire situation which caused you to file in the first place. Of course, with the case closed, the automatic stay does not prevent collection, including wage garnishment.

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Answered on 12/28/11, 7:30 am


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