Can Louisiana Dept of Revenue do anything to me on Taxes (business, Sub chapter S corp) unpaid but claimed in Bankruptcy (7).

Asked almost 2 years ago - New Orleans, LA

I had a Bankruptcy Chapter 7 discharged 11/04/09 and case closed 2/16/11. State of Louisianna Dept Revenue were named in list of creditors. While attempting to clean some of my credit (for employment purposes) find State tax lien had been filed in 2/10 . what can I do to remove this?

Attorney answers (3)

  1. David Lloyd Merrill


    Contributor Level 15


    Lawyers agree

    Answered . The discharge of taxes is not remotely as straight forward as you might suspect. There are timing issues, issues dealing with intent and also issues related to the nature of the "tax" at issue (some business taxes, such as certain payroll taxes and sales taxes, may not be dischargeable at all).

    This is a situation that requires a detailed analysis of your situation, and by extension requires competent bankruptcy counsel intimately familiar with tax issues to be involved to protect your rights and explain whatever limitations you may be facing.

    Good luck!

  2. Walter C Oney Jr

    Contributor Level 17


    Lawyers agree

    Answered . Corporations do not get discharges in chapter 7. So, if the prior bankruptcy was for the corporation, it would have had no effect at all on the corporation's tax liabilities. If you're talking about a PERSONAL bankruptcy, it would not have discharged your liability as responsible person for trust-fund taxes owed by the corporation. Whether a personal bankruptcy would have discharged other kinds of taxes is a question that you must ask of a local tax lawyer because, as Atty Merrill says, the question doesn't have an easy answer.

  3. Nicole Gabrielle Lawson

    Contributor Level 6

    Answered . I agree with the answers submitted. Whether or not taxes are discharged in a chapter 7 is a timing issue that is not easily figured. Your bankruptcy attorney should be able to answer this question. But if it were a business bk, you did not receive a discharge and I suppose that you added that the case was closed in 2011. Meaning the case was closed without a discharge. Accordingly, that debt is till in existence as the the state.

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