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Is it true that tax debt can be discharged in bankruptcy?

Chapter 7 of the bankruptcy code offers full discharge for your allowable debts. In Chapter 13, you can repay some debts through a court-approved payment plan, and the remaining obligations will be eligible for discharge. Chapters 7 and 13 manage tax debt in the same way.

3 ways to settle your IRS tax debt

As you work hard just to pay the bills and put food on the table, it's tough to keep up with Uncle Sam at the same time, and you may fall behind on taxes if you aren't prepared for the expense when it comes time to file. IRS debt isn't something that goes away if you ignore it, and eventually your wages may even be garnished to help pay for what you owe the government.

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