As you might expect, the law prevents a person from discharging certain taxes in bankruptcy. What you might not expect is that the law also may prevent a person from discharging debts incurred to pay for those same taxes as well. The reasoning here is that a debtor should not be able to simply substitute a dischargeable debt for a non-dischargeable one.
\nThe debt owed to your institution must have been incurred to pay a non-dischargeable tax. For obvious reasons, non-dischargeable taxes include taxes due to late or unfiled returns and fraudently filed returns. However, non-dischargeable taxes also include income taxes, payroll taxes, sales taxes, employment taxes and property taxes. The key is timing \u2013 how soon before the bankruptcy filing did the taxes become payable.
\nTherefore, if a member used money or credit extended by your institution to pay for a qualifying tax debt and filed bankruptcy, there are steps you can take to secure payment both within the bankruptcy and\/or prevent it from being discharged. A consultation as to the circumstances of your particular case is necessary to determine whether your institution has a viable claim to have the debt qualify for non-dischargeability. Contact us for a free consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"
As you might expect, the law prevents a person from discharging certain taxes in bankruptcy. What you might not expect is that the law also may prevent a person from discharging debts incurred to pay for those same taxes as well. The reasoning here is that a debtor should not be able to simply substitute […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/posts\/159"}],"collection":[{"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/comments?post=159"}],"version-history":[{"count":3,"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/posts\/159\/revisions"}],"predecessor-version":[{"id":178,"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/posts\/159\/revisions\/178"}],"wp:attachment":[{"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/media?parent=159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/categories?post=159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.melendrezlaw.com\/credit-union\/wp-json\/wp\/v2\/tags?post=159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}