How does filing for Chapter 7 Bankruptcy affect my taxes?

Filing for Chapter 7 Bankruptcy in Washington can have an impact on your taxes even after your debts are discharged. Under the Internal Revenue Service guidelines, when someone files for Chapter 7 Bankruptcy in Washington, any taxes owed to the IRS or the state of Washington are considered a non-dischargeable debt. This means that you must still pay back all of the taxes due even after your other debts are discharged. In addition, the IRS can place a lien on assets that you own that may not be discharged in bankruptcy. This could include your car, house, furniture, or other assets. This lien will remain in place until you pay back the taxes due to the IRS in full. It is also important to note that tax debt is not immediately discharged by filing for Chapter 7 Bankruptcy. You will still need to file your taxes as normal each year, even if you are in the middle of obtaining a discharge from bankruptcy. The best way to avoid falling behind on taxes is to file your taxes each year as quickly as possible to ensure that you do not accrue any penalties or interest charges. Overall, filing for Chapter 7 Bankruptcy does not eliminate your tax debt, but it can provide you with more time to pay it off. It is important to stay up-to-date on your filing deadlines and the consequences of not filing on time to ensure that your taxes do not become a burden during the bankruptcy process.

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How does filing for Chapter 7 Bankruptcy affect my taxes?

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