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That would depend on the type of debt. Some taxes are not discharged in bankruptcy. Although it is not true that all state and federal taxes are immune to bankruptcy proceedings. Depending on the circumstances some are dishargeable.

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8y ago
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18y ago

You shoud list ALL of your debts and creditors. Chapter 7 does not cancel: -Secured debts. -Most income taxes incurred in the last three years. -All student loans, unless you qualify for a hardship discharge. -Child and spousal support. -Any money that you owe as a result of being sued for drunken driving. Your debts also will not be canceled if a creditor proves that you lied about how much money you have, tried to hide some of your property or committed fraud. You may choose to reaffirm a secured debt. This means that you decide to pay the debt and keep the security, even though Chapter 7 would otherwise cancel the debt. Chapter 13 cancels a broader range of debts, so you should consult with a qualified bankruptcy attorney before making any decisions.

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15y ago

No, there is no authorization for states to do so under the United States Code.

Municipalities are explicitly authorized to declare bankruptcy 11 U.S.C. 109:

"(C) An entity may be a debtor under chapter 9 of this title if and only if such entity-

(1) is a municipality;

(2) is specifically authorized, in its capacity as a municipality or by name, to be a debtor under such chapter by State law, or by a governmental officer or organization empowered by State law to authorize such entity to be a debtor under such chapter;

(3) is insolvent;

(4) desires to effect a plan to adjust such debts; and

(5) (A) has obtained the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter;

(B) has negotiated in good faith with creditors and has failed to obtain the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter;

(C) is unable to negotiate with creditors because such negotiation is impracticable; or

(D) reasonably believes that a creditor may attempt to obtain a transfer that is avoidable under section 547 of this title."

11 U.S.C. 101(40), in turn, defines municipality as a "political subdivision or public agency or instrumentality of a State."

Given that municipalities are explicitly authorized to declare bankruptcy and states aren't, a bankruptcy judge would most likely conclude that Congress intended not to make bankruptcy relief available to states.

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11y ago

i owe the state of Texas 25000 for my ex wifes afdc and foodstamps for a child that is not my child. I have tried to clear this up, but with no luck

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Q: Can you list State and Federal debt or creditors on bankruptcy?
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What happens if you sell your secured debt you file bankruptcy and the original creditors want the items back?

Assuming you mean you sold the item that was security for the debt, you violated the contract and may have committed a crime if you did not pay the debt off with the proceeds. The creditors can ask the bankruptcy court to deny your discharge or dismiss your case, and charge you with fraud, a federal crime. if you failed to disclose the sale in the bankruptcy documents.They may not get the items back, but you will have to pay the creditors what you owe. Even if you land in jail or federal prison, you will have to pay the debt off.


What statement is not true regarding bankruptcy?

The judicial branch of the Federal Government includes the U.S. Supreme Court.


What regarding bankruptcy is not true?

Creditors must always eliminate the debt owed by the debtor when there is a bankruptcy.


Can you file bankruptcy on a truck repo past due loan?

No, if you mean, can you single out this debt to "file bankruptcy on." You file bankruptcy on ALL your creditors. You don't get to pick and choose. But you can certainly include such a debt in bankruptcy.


Is there a sample letter to notify debtors of bankruptcy?

There are letters that attorneys use to notify creditors of a debtors bankruptcy. This letter states that the individuals have filed bankruptcy and the creditors are to cease all contact and attempts to collect their debt.


Can your ex-husband file bankruptcy on a business debt he owes you and has been ordered to pay you by a civil court judge in the state of Indiana?

Certainly. That's why there are federal bankruptcy courts that have jurisdiction wherever the debt is.


If you are a landholder on a home and the person files bankruptcy will they be able to include the debt they owe you into the bankruptcy?

They can include it, but the creditor/landholder can file a relief of stay to have the debt excluded from being discharged in the bankruptcy. The decision of what debts are to be discharged are determined by state and/or federal law and the bankruptcy judge.


Can monies owed to the state of Maryland but not taxes be discharged in bankruptcy?

To be certain of the status of such debt you should check the state statutes if filing a state bankruptcy. If it is a Federal filing, debts owed to any state department or affiliate is only dischargeable in relation to the type of debt and when it was was incurred.


What triggered the periods of growth and decline of the US federal debt?

debt and bankruptcy


What is the difference between debt settlement vs bankruptcy?

There is a subtle difference between debt settlement and bankruptcy. Debt settlement allows a person to pay off some of their debt with their creditors. Bankruptcy claims do not result in payment of the debt. Either practice creates bad credit scores for the consumer.


If you have credit debt and that institution files bankruptcy do you still have to repay?

Yes. The bankrupt institution will pass your debt to its creditors that it owed money to.


Will you get rid of credit card debt with bankruptcy?

No. If you file bankruptcy, you are basically telling the creditors that you don't have any funds to pay them. Your finances are being held by the court and the lawyers will tell the creditors that you filed bankruptcy. You are still responsible for the debt. WRONG! If you file bankruptcy and file a chapter 7, if the judge approves your appeal all your credit card debts are erased, and creditors have to stop calling and harassing you. If you file a chapter 13, you are still responsible for a certain portion of your debt, to be paid over a 5 year period, and creditors have to stop calling and harassing you.