Interviewer: Are there any other obligations that can’t be discharged in a bankruptcy filing?
Tanya: Penalties for a drunk driving conviction are not dischargeable in bankruptcy. In addition to the penalties for drunk driving, wages that you owe to employees, criminal restitutions, and similar obligations are not dischargeable.
It Is Beneficial to Pay Back Taxes through a Bankruptcy Filing Rather than Separately
As I mentioned about taxes, some are simply not dischargeable. However, I’ve handled some very significant cases with tax debt from the State of New Jersey and the IRS. It is a little known fact that when you pay your taxes through a bankruptcy as opposed to outside the bankruptcy, you receive many benefits. You can really attain a good deal of resolution that way.
What Are Your Back Taxes? Attorney Helfand Has Created a Unique Service of Negotiating with Both the IRS and the State Government to Help Reduce Clients’ Taxes through Their Bankruptcy Filings
First of all, you can parse out certain obligations you do have to pay versus ones you don’t have to pay. It is as if you are negotiating with the IRS or the state government with the taxes and you can all agree upon a payment plan.
For example in the Chapter 13 or the Chapter 11 filing, I came upon this idea to resolve the tax issue. I had a recent tax issue where the clients actually owed about $120,000 of taxes. They had a business and so the balance was comprised of both commercial and personal taxes. I was able to reduce the amount to about $60,000 and they are on a payment plan to satisfy the $60,000 over five years.
I accomplished this by working with the government. I bargained with the government. My clients cooperated fully and had to submit all the required information and the end result was we arrived at a satisfactory resolution for all involved parties. It’s a good method if you have a lot of tax problems.