Tag Archives: Bankruptcy Attorney in Morris County

What Happens To Back Taxes When Filing Bankruptcy?

Morris County Attorney Helping People Get Out of Debt Popular singer Dionne Warwick revealed in a recent bankruptcy filing that she owed nearly $10 million in back taxes. The New Jersey resident, singer of such classics as “Walk On By” and ”I Say a Little Prayer” filed a Chapter 7 bankruptcy petition, saying a little prayer that she would be able to walk on by her troubles with the IRS. In the filing, Warwick stated that she owed nearly $7 million to the Internal Revenue Service, and more than $3 million in state business taxes to California. Her rep stated although she has paid the taxes, the large outstanding sums are penalties and interest which accumulated over the years. What Kind of Taxes are Dischargeable in Bankruptcy? Income taxes are the only type of taxes that may be discharged. The tax must be unsecured to be discharged, meaning the IRS…
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