Bankruptcy resolves many debts — but taxes are special. Some tax debts are discharged, others survive, and filing obligations continue regardless. Here is the quick guide.
Which Taxes May Survive Bankruptcy
- Recent (priority) income tax debts.
- Taxes with fraudulent filings or evasion.
- Some payroll and trust-fund taxes.
- Property taxes in certain cases.
Which Can Be Discharged
Older income taxes meeting conditions (age, return filed, assessment timing) can sometimes be wiped in Chapter 7 or planned in Chapter 13 — but rules are strict and specialised.
Your Obligations
Bankruptcy does not end tax filing or withholding duties. File returns on time before and after filing; new tax debt is generally not discharged.
Practical Advice
This area is technical — consult a tax professional alongside a bankruptcy lawyer before filing.
FAQ
Do I still owe taxes after bankruptcy?
Often yes for recent/priority taxes; consult an expert on your situation.
Should I file my taxes before bankruptcy?
Generally yes — complete returns help your case and eligibility.
Related: Bankruptcy Chapters and Business Taxes.