Can You Discharge Credit Card Debt Used To Pay Taxes In Bankruptcy?

by Mark J. Markus | Apr 6, 2017 | tax issues, taxes

It is tax season. My clients (and myself) are trying to find ways to pay the taxes that they owe to the IRS and State Franchise Tax Board. Paying your taxes with a credit card may seem like a good idea.  And in some cases it may indeed be a clever way to deal with the...

Bankruptcy Can Get Rid of Tax Debts But Only If Returns Are Filed

by Mark J. Markus | Sep 28, 2016 | Bankruptcy Law, tax issues, taxes

Tax Returns Must Be Filed In Order To Be Discharged In A Bankruptcy Case Income tax debts can be discharged in bankruptcy. But not all of them. There are rules.  Lots of them. One of the rules is that the taxes must be at least 3 years old. This is measured from the...

Can Bankruptcy Eliminate California Sales Taxes to the CDTFA and SBOE?

by Mark J. Markus | Mar 22, 2015 | Bankruptcy Law, tax issues, taxes

You can eliminate (discharge) sales tax obligations in bankruptcy if certain criteria are met. In California, sellers are required to pay sales taxes to the California Department of Tax and Fee Administration (CDTFA) (formerly, the State Board of Equalization...

To Discharge Taxes in Bankruptcy, File Tax Returns On Time

by Mark J. Markus | Feb 22, 2015 | Bankruptcy Law, tax issues, taxes

ALWAYS FILE YOUR TAX RETURNS ON TIME, even if you cannot pay the taxes you owe. Those of you who read my posts know that certain tax debts are dischargeable in bankruptcy. The basic (but definitely not all) requirements for discharge of income taxes are: The...

Banks Forgiving Mortgage Loans: What’s the Catch?

by Mark J. Markus | Oct 4, 2012 | asset protection, foreclosures, etc., real estate issues, tax issues, taxes

Your Home Loan Mortgage Just Disappeared? In the past few weeks in my Los Angeles, California practice, I have had several potential (and existing) clients tell me that the bank which holds the junior mortgage (e.g. 2nd or 3rd trust deed)  on their house has suddenly...

You Can Still Eliminate Credit Card Debts and Some Taxes in Bankruptcy

by Mark J. Markus | Feb 17, 2010 | Bankruptcy Law, chapter 7, credit card debt, new bankruptcy laws, taxes

Credit Card Debts ARE Dischargeable In Bankruptcy Contrary to popular understanding, in most cases credit card debts are still dischargeable in bankruptcy without a repayment plan (in a Chapter 7 bankruptcy case). In many cases, tax debts can also be discharged. This...