ANY debt must be listed in ANY bankruptcy. Simple as that. You should be asking is whether or not a debt is also discharged. I am not a tax attorney and I suggest you rely on a tax attorneys advice. But they will want to know what year are the taxes owed for , the type which you list as Income , whether you filed a tax return and if so when and was it late or not, and if not timely whether and when the tax return was assessed.
Meanwhile , other facts and issues can gravely affect your case I will list some of them now for you.
You need and want to enjoy your fresh start also. But the most important thing is to meet with an attorney as you asking this question means you have not. You care about 2 goals: keeping everything you have equity in and discharging all your debts. If you don't have any of the exceptions to discharge you will obtain that goal; most exceptions are set forth in 11 USC. 523 (Google it) like child support, some income taxes, traffic (in a ch 7) and criminal fines , and presumption of student loans. But some debts are dischargeable in a ch 13 but NOT in a ch 7 so you want to make sure and your attorney will discuss any such types with you also!
Your exemptions depend on what state you have lived in in the last 2 years and thus if in your state, then your states exemptions will apply. Most persons filing keep everything they own but your attorney will confirm that with you when they learn everything you own and the equity thereof!
Some secured debts like homes, vehicles, other secured debts an attorney will discuss your options on also as you must list any debts; but that does not mean you will lose them unless you have too much equity or are in default on paying for them! Discuss those options if they apply with your attorney too.
But other issues can arise that can greatly harm your case. Just one example: If you paid back a relative $3,000 11 months ago and now file bankruptcy next week, the trustee can SUE that relative to retrieve that $3,000 (under what is called a preference) for the benefit of the bankruptcy estate. As a result, most attorneys don't charge to meet with them the first meeting so meet with one no matter what.
Many great attorneys can be found right here on AVVO in your state so look, call, and meet one as soon as you can.
You should also want to know when to file: is there an advantage of waiting versus filing now and who should you pay between now and then! Good luck and enjoy your later fresh start.
I agree with Attorney Granvold's answer. To add to that as to dischargeability, RITA taxes for tax year 2012 and earlier are generally dischargeable now as long as the returns were filed on time and no other timing provisions that would affect dicharge are applicable in your case. If the taxes are more recent and you owe a significant amount, your attorney will likely talk about options and benefits of Ch 13. If you have not yet filed the actual RITA returns, do that right away and before filing bankruptcy. Be sure to hire an experienced bankruptcy attorney. Best of luck.
All answers are provided for general purposes only, not intended as legal advice, and does not establish an attorney-client relationship. Laura Nesbitt is a licensed attorney in the State of Ohio and Federal Southern District of Ohio.
We live in a state in the Fifth Circuit and the Fifth Circuit Court of Appeals has held that there is a Mississippi income tax cannot be discharged if the return was filed late even if 2 years has passed since the return was filed. The result would be different with federal taxes in our state.
You live in the Sixth Circuit. As I stated below, you need to meet with an experienced bankruptcy attorney. I have found that many attorneys that only handle chapter 7 cases are not as knowledgeable about bankruptcy law, thus even if you think you need to file a chapter 7, meet with an attorney that handles both chapter 7 and chapter 13 cases. Use the Avvo "Find a Lawyer" link and check out his/her rating and bio.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
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