Texas Bankruptcy Lawyers on Taxes

11 U.S.C. 523. - Exceptions to discharge - provides (a) discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt - (1) for a tax or a customs duty - (A) of the kind and for the periods specified in section 507(a)(2) or 507(a)(8) of this title, whether or not a claim for such tax was filed or allowed; (B) with respect to which a return, if required - (i) was not filed; or (ii) was filed after the date on which such return was last due, under applicable law or under any extension, and after two years before the date of the filing of the petition; or (C) with respect to which the debtor made a fraudulent return or willfully attempted in any manner to evade or defeat such tax. Any creditor, creditor's lawyer, trustee, or the court on it's own motion, may object to the discharge of taxes owed to federal state or local taxing authorities.

Texas Bankruptcy Lawyers In Practice

Only taxes which were declared, due, and payable more than two years before filing Texas bankruptcy are dischargeable. Any deviation from full disclosure will prevent discharge. In practice, expect liens to attach before the expiration of two years. Lawyer's motions cause delays, and frequently require determination by the court long after the expiration of the two year limitation. long after, but the limitation period for taxes is tolled while the case is pending. Tax liens will be enforced against specific property regardless of filing.

All debtors and their attorneys have questions about current laws. Board certified consumer bankruptcy specialists in Texas refer to the Code regularly, as well as review slip opinions of new case decisions as they become available. The process is organic, in that the law, benefits, rights and duties of debtors changes in response to the current political environment, and in turn, require a constantly changing approach in court to gain favor. Also be aware, each debtor and their attorney are responsible for legal compliance with all Texas bankruptcy laws regardless of actual knowledge of recent changes. For this reason, debtors filing pro se seldom achieve the results as favorable as debtors who are represented by a qualified consumer specialists who is familiar with current changes and requirements.

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