Do I have to pay taxes on any discharged debt?

In Kansas, if you file for bankruptcy, you may be able to have some of your debt discharged, which means you don’t have to pay it back. However, not all debt is discharged when you file for bankruptcy—some debts, like taxes owed, may still be due. When you file for bankruptcy, your bankruptcy case is considered by the court. The court determines which debt can be discharged and which cannot. If a debt is discharged, you are not required to pay it. Dischargeable debt includes most consumer debt, including medical bills, credit card debt, and personal loans. However, any taxes you owe to the Internal Revenue Service (IRS) are not dischargeable. This means that you must continue to pay them even after your bankruptcy case is discharged. This includes income taxes, as well as property taxes. Even if you receive a tax refund after you file for bankruptcy, you may be required to turn over any money received from the IRS to the court until your bankruptcy case is settled. If you owe taxes to the state of Kansas, regular income taxes are commonly discharged in bankruptcy. However, you may still be responsible for taxes associated with goods and services, like sales tax, as these are not usually dischargeable. When it comes to taxes, the best advice is to consult with an experienced bankruptcy attorney in Kansas. Your attorney can help you better understand any debt that you may be required to pay back even after filing for bankruptcy.

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Do I have to pay taxes on any discharged debt?

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