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According to several sources I found on the internet, you cannot file bankruptcy on taxes.

No, whatever you claim to be finding is absolutely wrong.

First off - when you file bankruptcy - you don't do it on a this or that - you go bankrupt on everything..... YOU GO BANKRUPT.

Some debts, notably child support & federal student/education loan CANNOT BE DISCHARGED. They are part of your BK, but the debt will either get paid using your existing assets, (or in a C-13 have their entire payment included).

Taxes, and even then depending on the type, are included, as everything is, and in fact take a surprisingly low priority in regards to other obligations, and most certainly may be reduced/discharged in keeping with the C-11, 7, or 13 rules.

Now understand, sales taxes charged, or withholding taxes from employees pay, ARE NEVER a personal/corporate debt...they are just money you collect or hold in trust for the State - they are your customers or employees - and it is criminal, and non-dischargeable - to fail to pay them over in their entirety as required.

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14y ago

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