Chapter 13 is one of the most used chapters for filing bankruptcy. Though it is a tricky chapter, many debtors have no option but to use this chapter when their income doesn’t allow them to file bankruptcy under Chapter 7.
One of the reasons why you could file for bankruptcy is to discharge your taxes. There are several state, federal and local income taxes that can be discharged under the various chapters of bankruptcy.
Bankruptcy is not only an answer for your difficult times but bankruptcy can also solve many of your tax debt issues. There are several provisions under the US Bankruptcy Code that can help you solve many of your tax problems, though it may not always erase tax debts completely.
Once you have filed for bankruptcy and you are on the path of recovery, it is very important that you plan your future course of action carefully. This is important so that you do not meet any new roadblocks in the future.
Many people believe that declaring bankruptcy is the end of the world. But in reality filing for bankruptcy is what a wise and farsighted person will do. Contrary to this popularly held false believe doesn’t mean the end of the world.