Legal Question in Bankruptcy in Wisconsin

Re: bankruptcy and taxes over three years.

The general rule is that taxes are not dischargeable in bankruptcy. Your protective "stay" is lifted once your bankruptcy is closed, so the IRS may well be within its rights in re-instituting collection activities on the old tax. Taxes can sometimes be discharged, but I always recomend that clients seek a formal court order to that effect while their bankruptcy case is still open, which requires a formal lawsuit in bankruptcy court. You may be able to reopen your banktuptcy case and still pursue this determination, but only at considerable expense. The general rule is that only income taxes can be discharged, but only if a timely return was filed with no fraud and three years have expired from the last allowable due date. I would therefore need much more information in order to answer your question. I would be happy to assist further if you wanted to follow up via e-mail or personally.

Re: bankruptcy and taxes over three years.

Hello

The general rule is that school loans and taxes cannot be cancelled. I am not sure how you got out the school loans, and not surprised that the IRS did not honor the discharge with respect to taxes. That is not an IRS rule. It is the law. Otherwise people would not pay their taxes and then get out of them with bankruptcy. Hope this answers your question. Good luck!