There are all kinds of debts that can lead an individual into a situation where they have to claim bankruptcy. With there being two different forms of bankruptcy such as the Chapter 7 and Chapter 13 the first step is determining which bankruptcy that you are eligible for. Your Indiana bankruptcy attorney will be able to assist you with this as well as the entire proceedings that are going to be before you to bring your bankruptcy into discharge.
Priority Debts
One of the types of debts that many individuals are faced with is a tax debt. This may be better handled under a Chapter 13 bankruptcy compared to a Chapter 7. The Chapter 13 bankruptcy may help you to be able to pay down your tax responsibilities, and will also determine if there is any portion of at that can be discharged, and whether any of it can be considered as a non priority when it comes to categorizing the tax debt you have.
If a portion of your tax that is considered a non priority it will be part of the unsecured debt section that you are dealing with. You may end up having to pay a portion of this but not all of it. There are many qualifications that tax has in order to be dealt with within your bankruptcy.
If there has been any type of fraud or tax evasion then it will not to be part of your bankruptcy action. Even if your tax turns out to be a priority debt it can still be conveniently handled through your repayment plan which is what a Chapter 13 bankruptcy is comprised of.
Filing for bankruptcy is often something that occurs when an individual has no other alternatives to gain financial relief. It should not be used unless necessary, but should also not be avoided if there is no other means of getting back on financial track once again.
