William Kunofsky

William Kunofsky

Friday, August 19, 2011

Filing Bankruptcy Too Soon

There is a serious risk when you file bankruptcy to stop tax levies. The bankruptcy filing may not discharge the tax debt in a Chapter 7 case. The filing may require payment in full of the priority tax claim (taxes typically less than three years old).
Waiting or taking alternative action may allow for the discharge  or conversion of the priority tax claim (pay tax in full plus interest to date of filing bk) to general unsecured(payment based upon ability).
Panic can cause you to make uninformed choices. Check out the requirements for discharge of tax debt and if you qualify prior to filing.  You will be glad you did.


  1. You should look at it as you would any major financial decision, such as buying a house, buying a car, or taking a vacation.
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  2. I think I will need to know about this case because I have a business and I will do my best to improve it and to prevent falling into bankruptcy case. Thanks for sharing this information.

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