How does the bankruptcy court treat outstanding taxes if filing for a Chapter 7?
Question Details: The debtor is underemployed.
Unfortunately, the outstanding taxes won't be discharged by filing bankruptcy. You might want to consider contacting the IRS or the state if it is state taxes to negotiate an Offer in Compromise, which is settling the matter for a lesser amount than the entire amount owed. Another alternative may be a payment plan with the IRS or state.
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