Virginia Bankruptcy Law: Can I Discharge My Tax Debt?

Determining whether you should file for bankruptcy can be a difficult decision — and once you've decided that bankruptcy is for you, it can be just as difficult to successfully navigate the bankruptcy process and take advantage of all opportunities available under the bankruptcy code. One common misconception, for example, is that you can't discharge taxes under a bankruptcy filing. But in the Commonwealth of Virginia, however, you can discharge some tax debt if certain technical requirements are met.

At the Law Office of Deborah N. Arthur, our lawyers understand the difficulties you face when filing for Chapter 7 or Chapter 13 bankruptcy. That's why we work tirelessly to make sure all of your options are thoroughly researched and realized, striving constantly to get you the best possible outcome in your bankruptcy case.

What Are The Requirements For Discharging Taxes Under The Bankruptcy Law?

While you can discharge some of your tax debt under the bankruptcy laws, there are certain requirements that need to be met for the debt to qualify for bankruptcy discharge. Some of these requirements include that:

  • The taxes are based on income
  • The taxes were due a minimum of three years prior
  • The return was filed at least two years before filing bankruptcy
  • Your taxes were assessed at least 240 days ago
  • No willful fraud or tax evasion occurred when filing the return

A skilled bankruptcy attorney at the Law Office of Deborah N. Arthur can help you determine which of your tax debts qualifies for discharge under the bankruptcy law. We can also help you gather the information and proper paperwork you need to file making the process easier for all involved.

What Taxes Are Nondischargeable Under Bankruptcy Law?

While some tax debt may qualify for discharge under bankruptcy law, there are some exceptions and types of tax debt that cannot be included in your bankruptcy filing. Some tax debts that are not dischargeable include:

  • Tax liens recorded against any property before you filed bankruptcy are still liens against that property even if you might not be personally liable
  • Your most recent property taxes that were due before you filed bankruptcy
  • Taxes that have been withheld by a third party such as payroll taxes which are to be sent to the government
  • Tax penalties on nondischargeable taxes that are not punitive
  • Some types of employment taxes, excise taxes and customs duties taxes

If you are facing bankruptcy proceedings and need the services of an experienced attorney to help you correctly file your bankruptcy paperwork and deftly navigate the court system, contact the Law Office of Deborah N. Arthur today at 703-278-2028 or reach out to us online to schedule your consultation. From our office in Annandale, we help people throughout Northern Virginia.