How Bankruptcy Handles Tax Debt: What You Can and Can’t Erase

Episode Summary: In this episode of Fresh Start with Jason Cline, host Lisa Mosbey sits down with Attorney Jason Cline to demystify the complexities of handling tax debt through bankruptcy. Jason, a seasoned bankruptcy attorney based in Albuquerque, New Mexico, delves into the specifics of which tax obligations can be discharged and the conditions that must be met for discharge eligibility. They explore the distinctions between income taxes and non-dischargeable taxes like payroll and trust fund taxes. Jason explains the benefits of Chapter 13 bankruptcy for managing tax debts and how it can provide relief from tax liens. The conversation also covers strategies to avoid new tax issues during an ongoing bankruptcy case and the protective power of the automatic stay against IRS actions. Listeners will gain valuable insights into managing tax debts effectively through bankruptcy, empowering them to make informed financial decisions. Key Timestamps: 00:01 – Introduction 0:23 – Bankruptcy and Tax Debt Overview 0:39 – Common Misconceptions About Tax Debt 1:04 – Dischargeable Taxes in Bankruptcy 1:46 – Rules and Time Limits for Tax Debt 2:22 – Payment Plans for Recent Tax Debts 2:53 – Understanding Payroll and Trust Fund Taxes 4:02 – Managing Multiple Debts in Bankruptcy 5:06 – Taxes in Chapter 13 Repayment Plans 6:00 – Addressing Tax Liens in Bankruptcy 7:34 – Avoiding New Tax Problems During Bankruptcy 8:28 – Immediate Protection from IRS Actions 9:29 – Frequency of Filing Bankruptcy About the Show: Fresh Start with Jason Cline is a podcast dedicated to helping individuals and families navigate the often overwhelming world of bankruptcy with clarity and confidence. Hosted by experienced attorney Jason Cline, the series provides practical advice and insights into Chapter 7 and Chapter 13 bankruptcy solutions. Each episode breaks down complex legal topics into understandable segments, empowering listeners to make informed decisions about their financial futures. Whether you're facing overwhelming debt or simply seeking to understand your options, Fresh Start with Jason Cline offers the guidance you need to take control of your financial life.