Frequently Asked Questions Below is a simple summary of the subject areas discussed on this site. Click on the above links to go to the specific sites of interest to you. Key benefits are the discharging of personal obligations, including older tax debts, and the ability to pick and choose which secured property to keep and pay for. Recent income taxes, payroll taxes, spousal and child support are not dischargeable.
Student loans are no longer dischargeable regardless of how old they are.
Recent prior law allowed the discharge of student loans if the repayment period commenced at least seven years before the bankruptcy filing. Current law limits the filing of Chapter 7 cases to once every six years. A Chapter 11 proceeding, is a much-expanded version of a Chapter 13, designed primarily for large businesses, partnerships and corporations, though individuals can file a Chapter 11. Chapter 11's are commonly used to obtain an expanded time period within which to pay back all or part of the outstanding obligations, including the ability to stretch tax repayments to the IRS, EDD, etc up to six years. Tax creditors generally do not get to vote and are stuck with the plan provided they are to be repaid within 6 years, and if they consent, the period can be stretched even longer.