Although most taxpayers wish to avoid ever filing for bankruptcy, there are times when it may be the best alternative to deal with taxes and other debts that have become overwhelming. Sometimes the bankruptcy decision must consider who the taxpayer must be most concerned about, his family versus the tax liability.

Contrary to what you may have heard, taxes are often dischargeable in bankruptcy. Back taxes, interest, and penalties may be wiped out by filing bankruptcy. If the tax balances meet the criteria for discharge in bankruptcy, it may be the best solution to resolve your crushing tax problems.

Unfortunately, not everyone qualifies to eliminate tax debts in bankruptcy. If you file bankruptcy and do not meet the criteria for discharge of the back taxes, the government will still be in hot pursuit after your bankruptcy is over. Pre-bankruptcy planning is key to determining if bankruptcy is or can be a viable solution.

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