Bankruptcy Can Not Wipe Out Taxes, Child Support or Student Loans

With few minor exceptions, taxes and student loans can not be wiped out by bankruptcy. Child support and Alimony obligations are almost never dischargeable in bankruptcy.

So forget this fantasy.

In the rare instances that taxes and student loans are dischargeable, you’re going to need to advice and counsel of a good attorney to make this happen, otherwise it is recommended that you immediately get your taxes filed and make a repayment plan with the appropriate taxing agency – otherwise they will make the arrangements themselves – wage garnishment and bank levy’s.

The IRS is actually easy to work with when it comes to payment plans (if you act early enough and contact them before the guys in the IRS windbreakers show up).

I always advise my clients who have tax problems to face up to them and make arrangements (even if it is a long payout period) to pay the tax debt. I call this coming out from the darkness into the light. If not, you’ll get stuck in purgatory where your always trying to dodge a levy or garnishment, which invariably leads to breaking other laws, working off the books and prolonging your ability to get a FRESH START. These people have long, long memories and unless and until you face up to your obligations you will not have any financial peace in your life.

I’ve met a few financial renegades who find themselves in this situation, but it is becoming harder and harder to work the edges of the financial system and they find they are becoming more and more marginalized.

If you owe child support, most states make it impossible to live a normal life, they will take away your licenses to conduct business, withhold taxes and essentially drive you underground.

There is no legal way around this problem.

Stand up and take responsibility for your children. Yeah, I know the argument; the state took my license, why should I pay? Well, that’s non-sense. You didn’t take responsibility when the child was born; now its time to pay.  This is not a political or moral statement – it just a fact – you either deal with it or you avoid (with all the consequences that go with it).

Get out of the darkness and into the light.

Disclaimer

Fresno-Bankruptcy-Lawfirm.com is owned by the Law Offices of Jeffery D. Rowe. We are a debt relief agency. We help people file for bankruptcy relief under the Federal  Bankruptcy Code (Title 11 of the United States Code). If you would like to discuss your situation in further detail, please call our offices at: (559) 228-1500 to schedule a consultation.