Florida  Bankruptcy  Services

727-322-5881

Stop lawsuits, wage garnishments & foreclosures.

Contact us

Taxes and Student Loans

While it is true that some taxes will not be discharged, others can be. Some federal taxes may be excepted from discharge if they are over 3 years old and meet all other criteria for discharge. Income taxes under three years old are not dischargeable in bankruptcy.

Did your employer file a 1099 with the IRS instead of a W-2 by claiming you are a contractor when you really weren't causing you to incur an additional 15% self employment tax liability in addition to the taxes you rightfully owe?  

If so you are not alone because more and more employers are doing this to avoid paying social security tax and Florida unemployment taxes.  Your local IRS office will be happy to help you resolve this issue at no charge because they don't like it any more than you do.  They can also help you resolve your tax issues through a workable repayment plan.

Student loans generally are never dischargeable in a Chapter 7 bankruptcy but there are exceptions but very few people qualify because the "undue hardship" provision of bankruptcy is reserved for extraordinary circumstances that are likely to continue for an extended period of time - not a short duration. But there are alternatives such as forbearances, refinancing, and Chapter 13 bankruptcy (usually a 5 year plan).
 

Copyright 2010
Florida Bankruptcy Services