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

Yes, you can keep certain types of tax debts when filing for bankruptcy in Mississippi. In the state, tax debt is considered a priority debt, meaning it is difficult to discharge in Chapter 7 or Chapter 13 bankruptcy. It is important to understand the difference between the two types of priority debt when considering filing for bankruptcy. Priority debt includes income taxes owed for the past three years, as well as any taxes associated with payroll, estate, and inheritance. In addition to priority debt, Mississippi allows for nonpriority tax debt to be discharged in Chapter 7 bankruptcy. Nonpriority tax debt includes property taxes, sales taxes, and any other taxes that are not associated with income taxes. With Chapter 7 bankruptcy, all nonpriority tax debts are discharged, meaning they are wiped away and you are no longer responsible for them. When filing for Chapter 13 bankruptcy, all tax debts are considered a priority debt. The only way to get rid of priority tax debt is to create a repayment plan, where you pay back your creditors over a set period of time. However, during this repayment plan, you will still be required to pay interest on any unpaid debt, including tax debt. To help make payments more manageable, you can request to extend the payment plan up to five years. Bankruptcy law in Mississippi is complex, and it is important to understand the difference between priority and nonpriority debt. It is advisable to consult with a qualified attorney to discuss your options and to ensure that all of your debts are dealt with the right way.

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

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