Do I Have To Pay Taxes On Discharged Debt In A Chapter 7 Bankruptcy?

You do not have to pay taxes on discharged debt in a Chapter 7 bankruptcy if the taxes are income taxes, no fraud or willful evasion is committed by the bankrupt, debt is at least 03 years old, the bankrupt passes “240 days rule of assessment” and bankrupt has filed the tax return. The conditions in which you have to pay taxes in Chapter 7 bankruptcy include recent property taxes, tax liens, third-party taxes, employment taxes, erroneous tax refunds as well as non-punitive tax penalties.