QUESTION

Will chapter 13 clear all tax debt?

Asked on Feb 27th, 2019 on Bankruptcy - Indiana
More details to this question:
I owe back taxes and currently going thru wage garnishment.
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1 ANSWER
Answered on Mar 05th, 2019 at 12:19 PM
Chapter 13  should eliminate all income tax debt because you will be required to pay any priority taxes 100% in the Chapter 13 and any nonpriority taxes would be discharged (assuming you complete all the required plan payments). Priority taxes are essentially those which are owed for years in which the tax returns were last due to be filed more then 3 years prior to filing the bankruptcy case or assessed within 240-days prior to the case being filed, or that are still assessable after the case is filed.  There are certain events which extend these time periods, such as having an open offer in compromise.  

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