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 Rhode Island. Generally, taxes are classified as either priority or non-priority debts. Priority debts are those that must be paid before other debts while non-priority debts are those in which creditors do not have to be paid first. When filing for bankruptcy in Rhode Island, priority tax debts are not dischargeable. This includes taxes owed for income, payroll, gift taxes, and other taxes. These debts must be paid during the term of the bankruptcy. Non-priority tax debts, on the other hand, are generally dischargeable. This includes taxes such as sales taxes, property taxes, and other non-priority tax debts. It is important to note that the bankruptcy process is unique in Rhode Island and some rules may be different from other states. Before filing for bankruptcy, you should consult with a law professional to get an accurate assessment of your situation and the laws that may apply. You should be aware of the different types of taxes that may be discharged when filing for bankruptcy. Additionally, you should make sure that you understand the repayment plans and other forms of debt relief that are available to you under the law.

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

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