Can I discharge taxes in a Chapter 11 bankruptcy?

Yes, taxes can be discharged in a Chapter 11 bankruptcy in South Carolina. Chapter 11 bankruptcy is a form of bankruptcy used by businesses and individuals who have substantial assets and/or income. When you file for Chapter 11 bankruptcy, the court will create a plan to repay some or all of your debts. Tax debts are included in that plan. In South Carolina, you can discharge all types of taxes, including income taxes, payroll taxes, sales taxes, and property taxes. However, there are certain criteria that must be met in order to do this. First, the tax debt must be more than three years old. Second, the taxes must have been assessed at least 240 days prior to filing for bankruptcy. Third, the tax return must have been filed at least two years prior to filing for bankruptcy. It is important to note that some types of taxes, such as child support or student loan debt, cannot be discharged in a Chapter 11 bankruptcy. Additionally, the discharge of your tax debts in a Chapter 11 bankruptcy may have an impact on your credit score and your ability to borrow money in the future. If you are considering filing for Chapter 11 bankruptcy in South Carolina, it is important to talk to a qualified bankruptcy attorney to make sure that you understand the process and the potential impact on your financial situation.

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