Eliminating Tax Debts in Bankruptcy Florida

If you need to discharge tax debts, Chapter 7 bankruptcy will probably be the better option -- but only if your debts qualify for discharge (see below) and you are eligible for Chapter 7 bankruptcy.

Local Companies

National Foundation for Debt Management
(727) 584-6667
14104 58th Street N.
Clearwater, FL
Arnold L J III
(904) 264-3627
718 N Orange Ave
Green Cove Springs, FL
Christian Smith & Assoc PA
(904) 398-5600
3617 Crown Point Rd Ste 4
Jacksonville, FL
Cohen & Thurston
(904) 388-6500
1723 Blanding Blvd
Jacksonville, FL
Xpress Inc
(904) 249-9399
1511 Penman Rd Ste B
Jacksonville Beach, FL
Athern Fred L JR
(904) 246-9994
2215 3rd St S
Jacksonville Beach, FL
Albertelli & Halsema PL
(904) 246-9400
233 3rd St N Ste 201
Jacksonville Beach, FL
Law Office of Maria Caldarone
772-794-3500
1705 19th Place
Vero Beach, FL
Albert H Mickler
(904) 725-0822
5452 Arlington Expy
Jacksonville, FL
Bryan Mickler
(904) 725-0822
5452 Arlington Expy
Jacksonville, FL

Provided By:

You may hear radio commercials offering the hope of eliminating tax debts in bankruptcy. But it's not as simple as it sounds. Most tax debts can't be wiped out in bankruptcy -- you'll continue to owe them at the end of a Chapter 7 bankruptcy case, or you'll have to repay them in full in a Chapter 13 bankruptcy repayment plan.

If you need to discharge tax debts, Chapter 7 bankruptcy will probably be the better option -- but only if your debts qualify for discharge (see below) and you are eligible for Chapter 7 bankruptcy .

When You Can Discharge a Tax Debt

You can discharge (wipe out) debts for federal income taxes in Chapter 7 bankruptcy only if all of the following conditions are true:

  • The taxes are income taxes. Taxes other than income, such as payroll taxes or fraud penalties, can never be eliminated in bankruptcy.
  • You did not commit fraud or willful evasion. If you filed a fraudulent tax return or otherwise willfully attempted to evade paying taxes, such as using a false Social Security number on your tax return, bankruptcy can't help.
  • The debt is at least three years old. To eliminate a tax debt, the tax return must have been originally due at least three years before you filed for bankruptcy.
  • You filed a tax return. You must have filed a tax return for the debt you wish to discharge at least two years before filing for bankruptcy.
  • You pass the "240-day rule." The income tax debt must have been assessed by the IRS at least 240 days before you file your bankruptcy petition, or must not have been assessed yet. (This time limit may be extended if the IRS suspended collection activity because of an offer in compromise or a previous bankruptcy filing.)

You Can't Discharge a Federal Tax Lien

If your taxes qualify for discharge in a Chapter 7 bankruptcy case, your victory may be bittersweet. This is because bankruptcy will not wipe out prior recorded tax liens. A Chapter 7 bankruptcy will wipe out your personal obligation to pay the debt, and prevent the IRS from going after your bank account or wages, but if the IRS recorded a tax lien on your property before you file for bankruptcy, the lien will remain on the property. In effect, this means you'll have to pay off the tax lien in order to sell the property.

For More Information

To find out more about which debts you can eliminate in bankruptcy, see The New Bankruptcy: Will It Work for You?, by attorney Stephen Elias (Nolo).


Copyright 2009 Nolo

For more information visit Nolo Press

Featured Local Company

National Foundation for Debt Management

(727) 584-6667
14104 58th Street N.
Clearwater, FL

Related Articles
- Avoid Bankruptcy Florida
In order for an individual to avoid bankruptcy, a couple of controls need to be placed on the individual's spending habits and overall lifestyle. For example, buying luxury cars on credit is an easy way to go bankrupt.
- Declaring or Filing Bankruptcy Florida
- Bankruptcy Introduction Florida
- How To Avoid Filing Bankruptcy Florida
- Credit Cards for Bankrupt Consumers Florida
- Chapter 11 Florida
- Business Bankruptcy Florida
- Filing Bankruptcy Florida
- Disadvantages of Personal Bankruptcy Florida
- Personal Bankruptcy Filing Options Florida
Regional Articles
- Eliminating Tax Debts in Bankruptcy Altamonte Springs FL
- Eliminating Tax Debts in Bankruptcy Apopka FL
- Eliminating Tax Debts in Bankruptcy Arcadia FL
- Eliminating Tax Debts in Bankruptcy Atlantic Beach FL
- Eliminating Tax Debts in Bankruptcy Auburndale FL
- Eliminating Tax Debts in Bankruptcy Avon Park FL
- Eliminating Tax Debts in Bankruptcy Bartow FL
- Eliminating Tax Debts in Bankruptcy Belle Glade FL
- Eliminating Tax Debts in Bankruptcy Boca Raton FL
- Eliminating Tax Debts in Bankruptcy Bonita Springs FL
- Eliminating Tax Debts in Bankruptcy Boynton Beach FL
- Eliminating Tax Debts in Bankruptcy Bradenton FL
- Eliminating Tax Debts in Bankruptcy Brandon FL
- Eliminating Tax Debts in Bankruptcy Brooksville FL
- Eliminating Tax Debts in Bankruptcy Cantonment FL
- Eliminating Tax Debts in Bankruptcy Cape Coral FL
- Eliminating Tax Debts in Bankruptcy Casselberry FL
- Eliminating Tax Debts in Bankruptcy Chipley FL
- Eliminating Tax Debts in Bankruptcy Clearwater FL
- Eliminating Tax Debts in Bankruptcy Clermont FL
- Eliminating Tax Debts in Bankruptcy Clewiston FL
- Eliminating Tax Debts in Bankruptcy Cocoa Beach FL
- Eliminating Tax Debts in Bankruptcy Cocoa FL
- Eliminating Tax Debts in Bankruptcy Crawfordville FL
- Eliminating Tax Debts in Bankruptcy Crestview FL
- Eliminating Tax Debts in Bankruptcy Crystal River FL
- Eliminating Tax Debts in Bankruptcy Dade City FL
- Eliminating Tax Debts in Bankruptcy Dania FL
- Eliminating Tax Debts in Bankruptcy Daytona Beach FL
- Eliminating Tax Debts in Bankruptcy Debary FL
- Eliminating Tax Debts in Bankruptcy Deerfield Beach FL
- Eliminating Tax Debts in Bankruptcy Defuniak Springs FL
- Eliminating Tax Debts in Bankruptcy Deland FL
- Eliminating Tax Debts in Bankruptcy Delray Beach FL
- Eliminating Tax Debts in Bankruptcy Deltona FL
- Eliminating Tax Debts in Bankruptcy Destin FL
- Eliminating Tax Debts in Bankruptcy Dunedin FL
- Eliminating Tax Debts in Bankruptcy Dunnellon FL
- Eliminating Tax Debts in Bankruptcy Englewood FL
- Eliminating Tax Debts in Bankruptcy Eustis FL
- Eliminating Tax Debts in Bankruptcy Fernandina Beach FL
- Eliminating Tax Debts in Bankruptcy Fort Lauderdale FL
- Eliminating Tax Debts in Bankruptcy Fort Myers FL
- Eliminating Tax Debts in Bankruptcy Fort Pierce FL
- Eliminating Tax Debts in Bankruptcy Fort Walton Beach FL
- Eliminating Tax Debts in Bankruptcy Gainesville FL
- Eliminating Tax Debts in Bankruptcy Green Cove Springs FL
- Eliminating Tax Debts in Bankruptcy Gulf Breeze FL
- Eliminating Tax Debts in Bankruptcy Haines City FL
- Eliminating Tax Debts in Bankruptcy Hallandale FL
- Eliminating Tax Debts in Bankruptcy Hialeah FL
- Eliminating Tax Debts in Bankruptcy Hobe Sound FL
- Eliminating Tax Debts in Bankruptcy Holiday FL
- Eliminating Tax Debts in Bankruptcy Hollywood FL
- Eliminating Tax Debts in Bankruptcy Homestead FL
- Eliminating Tax Debts in Bankruptcy Homosassa FL
- Eliminating Tax Debts in Bankruptcy Hudson FL
- Eliminating Tax Debts in Bankruptcy Immokalee FL
- Eliminating Tax Debts in Bankruptcy Inverness FL
- Eliminating Tax Debts in Bankruptcy Jacksonville Beach FL
- Eliminating Tax Debts in Bankruptcy Jacksonville FL
- Eliminating Tax Debts in Bankruptcy Jensen Beach FL
- Eliminating Tax Debts in Bankruptcy Jupiter FL
- Eliminating Tax Debts in Bankruptcy Key West FL
- Eliminating Tax Debts in Bankruptcy Kissimmee FL
- Eliminating Tax Debts in Bankruptcy Labelle FL
- Eliminating Tax Debts in Bankruptcy Lady Lake FL
- Eliminating Tax Debts in Bankruptcy Lake City FL
- Eliminating Tax Debts in Bankruptcy Lake Mary FL
- Eliminating Tax Debts in Bankruptcy Lake Placid FL
- Eliminating Tax Debts in Bankruptcy Lake Wales FL
- Eliminating Tax Debts in Bankruptcy Lake Worth FL
- Eliminating Tax Debts in Bankruptcy Lakeland FL
- Eliminating Tax Debts in Bankruptcy Land O Lakes FL
- Eliminating Tax Debts in Bankruptcy Largo FL
- Eliminating Tax Debts in Bankruptcy Leesburg FL
- Eliminating Tax Debts in Bankruptcy Lehigh Acres FL
- Eliminating Tax Debts in Bankruptcy Live Oak FL
- Eliminating Tax Debts in Bankruptcy Longwood FL
- Eliminating Tax Debts in Bankruptcy Loxahatchee FL
- Eliminating Tax Debts in Bankruptcy Lutz FL
- Eliminating Tax Debts in Bankruptcy Lynn Haven FL
- Eliminating Tax Debts in Bankruptcy Marco Island FL
- Eliminating Tax Debts in Bankruptcy Marianna FL
- Eliminating Tax Debts in Bankruptcy Melbourne FL
- Eliminating Tax Debts in Bankruptcy Merritt Island FL
- Eliminating Tax Debts in Bankruptcy Miami Beach FL
- Eliminating Tax Debts in Bankruptcy Miami FL
- Eliminating Tax Debts in Bankruptcy Miami Lakes FL
- Eliminating Tax Debts in Bankruptcy Middleburg FL
- Eliminating Tax Debts in Bankruptcy Milton FL
- Eliminating Tax Debts in Bankruptcy Miramar FL
- Eliminating Tax Debts in Bankruptcy Mount Dora FL
- Eliminating Tax Debts in Bankruptcy Mulberry FL
- Eliminating Tax Debts in Bankruptcy Naples FL
- Eliminating Tax Debts in Bankruptcy Navarre FL
- Eliminating Tax Debts in Bankruptcy New Port Richey FL
- Eliminating Tax Debts in Bankruptcy New Smyrna Beach FL
- Eliminating Tax Debts in Bankruptcy Niceville FL
- Eliminating Tax Debts in Bankruptcy Nokomis FL
- Eliminating Tax Debts in Bankruptcy North Fort Myers FL
- Eliminating Tax Debts in Bankruptcy North Miami Beach FL
- Eliminating Tax Debts in Bankruptcy North Palm Beach FL
- Eliminating Tax Debts in Bankruptcy North Port FL
- Eliminating Tax Debts in Bankruptcy Ocala FL
- Eliminating Tax Debts in Bankruptcy Ocoee FL
- Eliminating Tax Debts in Bankruptcy Okeechobee FL
- Eliminating Tax Debts in Bankruptcy Oldsmar FL
- Eliminating Tax Debts in Bankruptcy Opa Locka FL
- Eliminating Tax Debts in Bankruptcy Orange City FL
- Eliminating Tax Debts in Bankruptcy Orange Park FL
- Eliminating Tax Debts in Bankruptcy Orlando FL
- Eliminating Tax Debts in Bankruptcy Ormond Beach FL
- Eliminating Tax Debts in Bankruptcy Oviedo FL
- Eliminating Tax Debts in Bankruptcy Palatka FL
- Eliminating Tax Debts in Bankruptcy Palm Bay FL
- Eliminating Tax Debts in Bankruptcy Palm Beach FL
- Eliminating Tax Debts in Bankruptcy Palm Beach Gardens FL
- Eliminating Tax Debts in Bankruptcy Palm City FL
- Eliminating Tax Debts in Bankruptcy Palm Coast FL
- Eliminating Tax Debts in Bankruptcy Palm Harbor FL
- Eliminating Tax Debts in Bankruptcy Palmetto FL
- Eliminating Tax Debts in Bankruptcy Panama City Beach FL
- Eliminating Tax Debts in Bankruptcy Panama City FL
- Eliminating Tax Debts in Bankruptcy Pembroke Pines FL
- Eliminating Tax Debts in Bankruptcy Pensacola FL
- Eliminating Tax Debts in Bankruptcy Pinellas Park FL
- Eliminating Tax Debts in Bankruptcy Plant City FL
- Eliminating Tax Debts in Bankruptcy Pompano Beach FL
- Eliminating Tax Debts in Bankruptcy Ponte Vedra Beach FL
- Eliminating Tax Debts in Bankruptcy Port Charlotte FL
- Eliminating Tax Debts in Bankruptcy Port Orange FL
- Eliminating Tax Debts in Bankruptcy Port Richey FL
- Eliminating Tax Debts in Bankruptcy Port Saint Lucie FL
- Eliminating Tax Debts in Bankruptcy Punta Gorda FL
- Eliminating Tax Debts in Bankruptcy Riverview FL
- Eliminating Tax Debts in Bankruptcy Rockledge FL
- Eliminating Tax Debts in Bankruptcy Safety Harbor FL
- Eliminating Tax Debts in Bankruptcy Saint Augustine FL
- Eliminating Tax Debts in Bankruptcy Saint Cloud FL
- Eliminating Tax Debts in Bankruptcy Saint Petersburg FL
- Eliminating Tax Debts in Bankruptcy Sanford FL
- Eliminating Tax Debts in Bankruptcy Sarasota FL
- Eliminating Tax Debts in Bankruptcy Satellite Beach FL
- Eliminating Tax Debts in Bankruptcy Sebastian FL
- Eliminating Tax Debts in Bankruptcy Sebring FL
- Eliminating Tax Debts in Bankruptcy Seffner FL
- Eliminating Tax Debts in Bankruptcy Seminole FL
- Eliminating Tax Debts in Bankruptcy Spring Hill FL
- Eliminating Tax Debts in Bankruptcy Starke FL
- Eliminating Tax Debts in Bankruptcy Stuart FL
- Eliminating Tax Debts in Bankruptcy Summerfield FL
- Eliminating Tax Debts in Bankruptcy Sun City Center FL
- Eliminating Tax Debts in Bankruptcy Tallahassee FL
- Eliminating Tax Debts in Bankruptcy Tampa FL
- Eliminating Tax Debts in Bankruptcy Tarpon Springs FL
- Eliminating Tax Debts in Bankruptcy Titusville FL
- Eliminating Tax Debts in Bankruptcy Valrico FL
- Eliminating Tax Debts in Bankruptcy Venice FL
- Eliminating Tax Debts in Bankruptcy Vero Beach FL
- Eliminating Tax Debts in Bankruptcy Wauchula FL
- Eliminating Tax Debts in Bankruptcy Wesley Chapel FL
- Eliminating Tax Debts in Bankruptcy West Palm Beach FL
- Eliminating Tax Debts in Bankruptcy Winter Garden FL
- Eliminating Tax Debts in Bankruptcy Winter Haven FL
- Eliminating Tax Debts in Bankruptcy Winter Park FL
- Eliminating Tax Debts in Bankruptcy Winter Springs FL
- Eliminating Tax Debts in Bankruptcy Zephyrhills FL
Related Articles
- Personal Bankruptcy Filing Options Florida
Before filing for bankruptcy, it is always advisable to consider all the other available alternatives that may work for you. They include talking to your creditors and having them agree to accept a lesser amount as the total debt settlement.
- Disadvantages of Personal Bankruptcy Florida
- Declaring or Filing Bankruptcy Florida
- Chapter 11 Florida
- Credit Cards for Bankrupt Consumers Florida
- Bankruptcy Introduction Florida
- Filing Bankruptcy Florida
- Avoid Bankruptcy Florida
- Business Bankruptcy Florida
- How To Avoid Filing Bankruptcy Florida
Related Local Events
Florida Department of Revenue Tax Workshop
Dates: 1/20/2010 - 1/20/2010
Location: Chamber of Commerce of the Palm Beaches
West Palm Beach, FL
View Details

Florida Department of Revenue Tax Workshop
Dates: 3/17/2010 - 3/17/2010
Location: Chamber of Commerce of the Palm Beaches
West Palm Beach, FL
View Details

Business Development Committee Meeting TIME CHANGED
Dates: 5/25/2010 - 5/25/2010
Location: St. Lucie County Chamber of Commerce
Port St. Lucie, FL
View Details

Florida Department of Revenue Tax Workshop
Dates: 6/16/2010 - 6/16/2010
Location: Chamber of Commerce of the Palm Beaches
West Palm Beach, FL
View Details

Florida Department of Revenue Tax Workshop
Dates: 8/18/2010 - 8/18/2010
Location: Chamber of Commerce of the Palm Beaches
West Palm Beach, FL
View Details

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History