Bankruptcy Myth 11
You can’t wipe out taxes through bankruptcy.
Actually, we’ve wiped out hundreds of thousands of dollars of “old” tax debt for our clients. By "old" tax debt, I mean tax debts that are generally at least three years old. Often we advise waiting a few months or even years so the taxes will be wiped out. Several qualifications must be met, but once these qualifications are met, the taxes are gone - for good. We are talking here primarily about income tax (including penalties and interest). Withholding tax and sales taxes are never dischargeable in bankruptcy.
