How to Discharge and Remove Tax Debt in Bankruptcy Court

There are a few key things to understand about tax debt and bankruptcy. The first is that tax debt is treated a bit differently in bankruptcy than other kinds of debt. The second is that there are a few different ways to deal with tax debt in bankruptcy.

The most important thing to understand about tax debt and bankruptcy is that tax debt is a priority debt. This means that it is one of the first debts that a bankruptcy court will deal with. Other priority debts include child support and alimony payments, and debts resulting from a personal injury lawsuit.

There are a few different ways to deal with tax debt in bankruptcy. The most common way is to include the tax debt in your bankruptcy petition. This means that the bankruptcy court will order your creditors to stop harassing you for the money and will discharge the debt.

You can also choose to pay off your tax debt in bankruptcy. This means that you will have to come up with the money to pay off the debt in full. Once you have done this, the bankruptcy court will discharge the debt.

Finally, you can choose to negotiate a payment plan with the IRS. This means that you will have to make monthly payments to the IRS until the debt is paid off. Once you have completed the payment plan, the bankruptcy court will discharge the debt.