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I filed chapter 7 a year ago and want to know if I still have to pay sales tax on a car I turned in on a chapter 7?

Ofallon, MO |

The car was in my 13 then turned in on my 7

Attorney Answers 3

Posted

The question you really are asking, I think, is whether your old sales tax bills are still collectible if you are trying to register another car post-petition? This is a matter of state law. I would ask the question at the County Tax office where you reside. See what they say ... you may want to check with the County Counselor as well depending on the answer.

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Posted

You do not have to pay if the taxes were discharged on your converted case.

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4 comments

Asker

Posted

How do I know?

Asker

Posted

How do I know?

Matthew Scott Berkus

Matthew Scott Berkus

Posted

I would listen to Gary as he is licensed in MO. The question you raise is very specific to MO state law. If you received your discharge in your chapter 7, and this sales tax debt was listed (and assuming it is a dischargeable debt), then the debt is discharged.

Gary D. Bollinger

Gary D. Bollinger

Posted

If you do not have an attorney, consult a local bankruptcy attorney in O'Fallon.

Posted

Whether or not sales tax is dischargeable in bankruptcy is a question of state law. It depends on whether or not your state defines sales tax as an "excise" or "trust fund" tax. If your state does define sales tax as an "excise" or "trust fund" tax, then the sales tax will not be excepted from bankruptcy discharge. In NYS, for example, sales tax is considered a "trust fund" tax and is excepted from bankruptcy discharge.

This material does not constitute tax, legal or accounting advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS or NYS penalty. The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. This response is not intended to create, and does not create, an attorney-client relationship between you and the author.

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Gregory David Verdibello

Gregory David Verdibello

Posted

The following sentence should read: "If your state does define sales tax as an "excise" or "trust fund" tax, then the sales tax WILL be excepted from bankruptcy discharge."

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