If you are considering filing for bankruptcy to avoid paying tax debts, think again: neither Chapter 7 nor Chapter 13 bankruptcy will allow you to discharge tax debts unless you have special circumstances.

Depending on the type of bankruptcy you file for, paying off your tax debts will be accomplished in different ways. In the case of Chapter 7 bankruptcy, even though some of your debts will be discharged, your tax debts will simply be put on hold until your bankruptcy has been completed. You will be responsible for them in the future if you are unable to pay them off now. As for Chapter 13 bankruptcy, tax debts will be included in your payment plan and will be paid off along with your other prioritized debts.

These are the general rules applying to tax debts in bankruptcy case. If you have questions about these general rules or bankruptcy in Texas, speak with a Houston bankruptcy lawyer by contacting the Malaise Law Firm today.