Can I keep certain types of tax debts when filing for bankruptcy?

Yes, you can keep certain types of tax debts when you file for bankruptcy in Delaware. Depending on the type of tax debt, there are various scenarios that may occur. If the tax debt is related to income taxes, you may be able to file for a Chapter 7 or Chapter 13 bankruptcy. In Chapter 7, most unsecured tax debts such as income taxes, can be eliminated. In Chapter 13, the court may decide to allow you to repay the taxes over a period of time. Sometimes, certain debts are not dischargeable through bankruptcy. These include debts that are considered fraud, recent income taxes, and repayment of any retirement fund that has been taken without permission. Under Delaware law, there are other alternatives to filing for bankruptcy that can help with tax debt. Depending on your particular circumstances, you may be able to negotiate an offer-in-compromise with the state or IRS. This is a form of debt settlement that allows you to pay a reduced amount on your debt. In addition, you may also be able to set up an installment agreement with the state or IRS in order to pay off your debt in small monthly payments. In conclusion, yes, you can keep certain types of tax debts when filing for bankruptcy in Delaware. However, you should speak to a Delaware bankruptcy lawyer in order to find out which option is best for you.

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Can I keep certain types of tax debts when filing for bankruptcy?

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