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While filing for bankruptcy lot of legal issues have to be taken care of. The person may have to decide about the various financial debts and responsibilities that might be there. Taxes are one of those issues of an individual’s finances that have to be considered. Ignorance of tax related issues might give rise to various questions. This article provides answers to some of the most commonly asked questions about issues related to this. Is Sates Tax dischargeable in a Chapter 7 bankruptcy?
Usually, it is not dischargeable in a Chapter 7 bankruptcy. However, in some states where the sales tax is an excise tax imposed on the merchant to allow him / her to do business, the individual may hire a tax attorney to get it discharged. Can someone get a tax discharge in a Chapter 7 bankruptcy if tax is not filed?
It may not be possible for someone to get a tax discharge in a Chapter 7 bankruptcy if taxes are not already filed. To get qualified for a discharge in a bankruptcy the person may have to file the taxes and should be at least three years old. Can someone be forced to vacate a property where the property and the property tax are part of the bankruptcy stay?
It may not be possible for the probate court to force the individual to leave the property in such a case. However, the personal representative of the bankruptcy estate may request the bankruptcy court to grant relief from the stay. In such cases the person might have to vacate the property. What happens if someone does not give the bankruptcy trustee a part of the tax return once the bankruptcy is discharged?
If someone does not pay the trustee a part of the tax return after the bankruptcy discharge, the trustee might request the court to set aside the discharge due to nonpayment. If the person is not in a position to pay, he / she may request the trustee for a payment plan. The trustee, though not under any obligation, may accede to the request. Can Federal Payroll Tax be discharged in a chapter 7 bankruptcy?
Usually, in most cases it is not dischargeable in chapter 7 bankruptcy. It is only possible to discharge the income tax in chapter 7 bankruptcy. Can someone’s daughter be listed as a dependent in the bankruptcy if he / she is listed as a dependent on the individual’s taxes?
It is immaterial whether a person lists his / her daughter as a dependent on his / her taxes so far as listing her as a dependent in a bankruptcy is concerned. In some cases it might influence the court’s decision to accept the daughter as a dependent. However, in most cases the individual may be listed as a dependent even if she is not listed as a dependent on the individual’s taxes and vice versa. It is essential to know how bankruptcy can affect your taxes. That way you could plan your bankruptcy in a better manner. A thorough knowledge would help you understand what to inform your trustee in a bankruptcy and what need not be informed. If you find it complicated it is better to ask a bankruptcy lawyer for the best course of action.
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