Can I discharge taxes in a Chapter 11 bankruptcy?

Yes, you can discharge taxes in a Chapter 11 bankruptcy in Minnesota. In Chapter 11 bankruptcy, a debtor may reduce tax liabilities and prioritize payment of other bills. This can help to reduce the total amount of debt owed, allowing the debtor some financial breathing room. When filing for Chapter 11 bankruptcy, the debtor can petition the court to discharge income taxes and other types of taxes that are more than three years old. However, to qualify for a discharge, the debtor must meet certain criteria. For example, the taxes must have been assessed more than 240 days ago, the debtor must not have been involved in any type of fraud, and the taxes must not be secured taxes such as estate taxes or real estate taxes. In addition, a debtor must also prove to the court that the taxes cannot be collected from any other source, like assets or income. That means that if a debtor has assets that can be used to pay taxes, the court may not grant the discharge. Filing for Chapter 11 bankruptcy in Minnesota can be a great way to reduce or even get rid of some of your tax debt. Just make sure that you meet all of the criteria and follow all of the requirements to ensure that your taxes can be discharged.

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Can I discharge taxes in a Chapter 11 bankruptcy?

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