Investopedia defines bankruptcy as “A legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor or on behalf of creditors. All of the debtor’s assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy”. This petition is commonly filed by the debtor, but in some cases it has also been experienced that the creditor has filed the petition. Here is a knockout post about bankruptcy.
The bankruptcy depicts the financial standing of the company, business or and individual person. The graph of the income keeps on fluctuating. It is also witnessed that the poor company can become the billion dollar company and the billion dollar company can be turned into a bankrupt company. This is the part of the business. Similar is the case with the personal status. The company is an independent entity, but it is owned by a singular or multiple people. The people can also experience bankruptcy due to a number of reasons. If you experience any condition related to bankruptcy, then Ariano Reppucci is the law firm which will help you and guide you to deal with the situation. More details can be obtained by viewing a knockout post such as this one.
The chapter 7 and the chapter 13 may serve as the knockout post if you are facing the condition. The knockout post is the most decisive in bankruptcy issues. These chapters decide whether the tax debts are dischargeable or not. There are certain conditions to declare the tax debt to be dischargeable. These chapters have enlisted five conditions for this. Only income taxes are dischargeable in bankruptcy. Other taxes such as payroll taxes or fraud penalties cannot be eliminated in bankruptcy. Interest accrued on dischargeable tax debt is dischargeable in bankruptcy as well. Penalties may be discharged even if the tax debt does not qualify for discharge. The debt should be at least three years old. The tax debt less thirty six months will not be entertained. The tax return should at least cover the duration of minimum two years. Another requirement is of tax assessment. The tax assessment should also be 240 days old. If your case fulfil the above mentioned conditions then you need not to worry.