Debts are not created equal, and some often require more work than others to discharge. Back-taxes are in that category. There is good news however. If you have certain income taxes that you owe to the IRS or state division of taxation that are more than 3 years old, the federal bankruptcy law usually allows those to be discharged. That means you don’t ever have to pay it back, however there are additional rules that apply.

Once a bankruptcy is filed, ALL tax garnishments are required to stop instantly. Your take-home pay will rise and you will be in a better position to set up a payment plan (Chapter 13 case) for the debt that may not be discharged. By filing bankruptcy, you are also able to stop penalties and interest from accruing.

It is imperative that tax problems be handled carefully or they will never disappear.