Can I discharge taxes in a Chapter 11 bankruptcy?

Yes, you can discharge taxes in a Chapter 11 bankruptcy in West Virginia. Chapter 11 bankruptcy law allows a debtor to reorganize their debts so that they can make a payment plan to pay off their debts over time. Under Chapter 11, the debtor is allowed to discharge certain types of taxes, such as income taxes and payroll taxes. However, other types of taxes such as property taxes and sales taxes cannot be discharged. In addition, in order to be eligible for a tax discharge, certain criteria must be met. For example, the taxes must be more than three years old and must have been due more than two and a half years ago. Additionally, the debtor must demonstrate that they have made a good-faith effort to pay the taxes. If all of these criteria are met, then the debtor can have the taxes discharged under Chapter 11. It is important to note that the IRS may be able to reclaim the discharged taxes if it is determined that bankruptcy was filed in bad faith or to avoid tax payments. Therefore, it is important to consult with a qualified attorney prior to filing for Chapter 11 in order to make sure all requirements are met and to avoid any potential penalties.

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