Are state and federal tax obligations dischargeable in Chapter 7 Bankruptcy?

Yes, state and federal tax obligations in South Carolina are dischargeable in Chapter 7 Bankruptcy. This means that the filer can have a portion of their taxes forgiven as part of bankruptcy proceedings. However, this is only applicable to taxes that are three years old or older, and are not fraudulent in nature. Additionally, the taxes must have been originally due more than 240 days before the filing of the bankruptcy petition. In addition, only certain types of taxes are eligible to be discharged in a Chapter 7 bankruptcy. Generally, these taxes include income taxes, as well as taxes on unearned income such as Social Security and unemployment benefits. Taxes from property transactions, such as real estate taxes, are typically not dischargeable in a Chapter 7 bankruptcy. Tax obligations that are not dischargeable in Chapter 7 bankruptcy are still typically dischargeable in a Chapter 13 bankruptcy. In this type of bankruptcy plan, the filer agrees to pay back a portion of their debts over a period of three to five years. This allows the filer to have a portion of their taxes forgiven, and helps them to keep up with their payments. Overall, while state and federal tax obligations are dischargeable in Chapter 7 Bankruptcy in South Carolina, it is important to note that only certain types of taxes qualify for this type of relief. Additionally, if the taxes do not meet the criteria for discharge, then a Chapter 13 Bankruptcy may be a better option. Ultimately, any filer considering a bankruptcy should consult a legal or financial advisor to determine which type of bankruptcy is best suited to their specific tax obligations.

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Are state and federal tax obligations dischargeable in Chapter 7 Bankruptcy?

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