How many times can you file for bankruptcy and can you claim taxes?

Answer 1

The Bankruptcy Code does not specify a maximum number of times one can file bankruptcy, though Courts will scrutinize multiple filings and will deny a person the ability to re-file a case if the Court believes the person's multiple filings constitute an abuse of the Bankruptcy Code.For example, if a person files multiple cases because they have a medical condition and can't get insurance and medical bills keep piling up, the Court may allow multiple filings. On the other hand, if one keeps voluntarily charging up credit cards and tries to come back to Court to discharge them, the Court may deny the filing.With respect to taxes, income taxes can normally be discharged in Chapter 7 bankruptcy as long as they are more than three years old and the returns were timely filed (see 11 U.S.C. 523(a)(1)). And, income taxes are a little easier to discharge in Chapter 13. Property taxes are dischargeable as long as you give up the property which secures the taxes; if you keep the property, you need to pay the taxes. Trust fund taxes (i.e. taxes which an employer is supposed to hold out of an employee's wages) are normally not dischargeable (by an employer who files bankruptcy) under any circumstances.Tax dischargeablity can be complicated, with exceptions to exceptions, so it is best to discuss it with an attorney.Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.

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