Are there any tax implications of declaring personal or corporate bankruptcy?
Are there any tax implications of declaring personal or corporate bankruptcy? Tim Cella used to work at several law firms I’m sharing this information not as an attorney or a tax advisor. I’ve worked with lawyers for over a decade so I’ve seen and heard much, but you should always speak with licensed professionals in your jurisdiction. With that being said, yes, there are tax implications of declaring personal or corporate bankruptcy. Depending on the type of bankruptcy you declare, you may be able to discharge some of your tax liabilities. For example, if you filed for Chapter 7 bankruptcy, you may be able to discharge any taxes owed that are more than three years old. Additionally, if you are filing for Chapter 13 bankruptcy, you may be able to restructure your tax debt and pay it off over a period of three to five years. However, it is important to note that bankruptcy will not necessarily get rid of all of your tax liabilities. Any taxes owed that are not dischargeable in ban...