can you file bankrupcy on california state income taxes which are owed?
there is also a lien and they are old taxes and i am no longer a california resident
Public Comments
- No - you still owe - you may be able to reduce the amount you owe - but you still owe.
- No, you can't get out of government debts...including students loans & taxes.
- Not sure about the lein, but yes on the taxes. You file bankruptcy for all debts, not selected debts. Make sure it is worth the expense and hit to your credit rating before you jump in. Many times you can negotiate with the state to pay a lesser amount.
- Taxes that became due and owing more than three years ago--this means 2004 year and prior--and taxes for those years provided the tax agency first sent a bill at least 240 days ago are discharged in a liquidating bankruptcy except as to exempt or abandoned property or property secured by the lien. If you have taxes reported on returns for 2004 and prior and no property in California, they will be discharged.
- You do not file bankruptcy on a specific debt. You file bankruptcy for yourself, or not. If you do, then you must disclose all your debts in the filing, and the filing applies to all debts except those that are exempted by law (such as student loans) and those that you "reaffirm".
- You can file bankruptcy. However, the bankruptcy court will not discharge the tax debt. Instead, the court will require a repayment plan. This could include garnish of wages, etc.
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