Bankruptcy
Bankruptcy is a legal procedure that results in debt relief. Debt relief can be obtained through a process of liquidating assets or reorganizing debt. The release of the debt is referred to as a discharge.
Bankruptcy laws are very specific about the discharge of taxes. The Internal Revenue Service can obtain relief from any protection that a bankruptcy might offer. Not all types of taxes can be discharged. Taxes can only be discharged at certain times. Therefore, it is possible to file for bankruptcy and still have a remaining tax debt.
