Does Bankruptcy Erase Tax Debt?
The personal bankruptcy process is a way for those experiencing severe financial difficulties to wipe their debts and start again. But does bankruptcy erase tax debt?
Some may be surprised by the fact that while filing for bankruptcy does not wipe out federal housing or education loans, it does erase tax debt, providing that certain conditions are met. As well as having filed an honest, non-fraudulent tax return and not intentionally attempting to evade paying your taxes, there are three other criteria that must be met in order for taxes to be considered eligible for discharge.
• 3 years … Read more at 2011 Taxes.