Chapter 7 (liquidation) bankruptcy is generally available if you’re an individual or business debtor, regardless of how much you owe and whether you’re solvent. Some tax debt may be dischargeable. But even if this debt is eventually erased, you must continue to comply with tax laws during the bankruptcy process. Make estimated tax payments (if applicable) and consider increasing them or your withholding if your bankruptcy filing is partly due to underpaid tax. If you’re owed a tax refund, you may still receive it. However, the IRS could use it to offset any federal tax debt. You can check the status of refunds on the IRS’s website at https://bit.ly/4xHEinU. Contact us for more information.
