Hey everyone, I’m in a tough spot financially and planning to file Chapter 7 bankruptcy. I’m recently divorced, and my ex and I have some joint IRS debt from 2018, 2019, and 2020. As part of the divorce, my ex agreed to take on the IRS debt, but I’m pretty sure he’s not going to make the payments. I live in California, and there’s no IRS judgment or lien on this debt. Does anyone know if I can include this IRS debt in my bankruptcy filing?
I think you can include it, but there are some rules for tax debt. Like, it has to be from returns due at least three years ago, right?
Aspen said:
I think you can include it, but there are some rules for tax debt. Like, it has to be from returns due at least three years ago, right?
Yeah, I heard something like that. The debt is from 2018-2020, so I guess 2018 might qualify? Not sure about the other years though.
Aspen said:
I think you can include it, but there are some rules for tax debt. Like, it has to be from returns due at least three years ago, right?
You’re right, it’s about timing. Also, the returns have to be filed at least two years before the bankruptcy filing, and the tax assessed 240 days before. Did you file on time?
California’s community property laws might complicate things. Even if your ex agreed to pay, you could still be on the hook with the IRS. 
Keenan said:
California’s community property laws might complicate things. Even if your ex agreed to pay, you could still be on the hook with the IRS.
Ugh, that’s what I was afraid of. So even if it’s in the divorce agreement, I can’t dodge it?
Keenan said:
California’s community property laws might complicate things. Even if your ex agreed to pay, you could still be on the hook with the IRS.
Unfortunately, divorce agreements don’t override IRS rules. The bankruptcy court will decide if it’s dischargeable.
If there’s no judgment or lien, it should be simpler to handle in bankruptcy. Have you talked to a lawyer about it?
Ellis said:
If there’s no judgment or lien, it should be simpler to handle in bankruptcy. Have you talked to a lawyer about it?
Not yet, I’m trying to understand my options first. Figured someone here might have gone through something similar.
Ellis said:
If there’s no judgment or lien, it should be simpler to handle in bankruptcy. Have you talked to a lawyer about it?
Definitely worth consulting a lawyer, though. Bankruptcy is tricky, especially with tax debts. Good luck!
FYI, even if the IRS debt doesn’t qualify for discharge, you might be able to set up a payment plan with them. They’re usually pretty flexible.
Soren said:
FYI, even if the IRS debt doesn’t qualify for discharge, you might be able to set up a payment plan with them. They’re usually pretty flexible.
Thanks for the heads up. I’ll keep that in mind if this doesn’t work out through bankruptcy.
Soren said:
FYI, even if the IRS debt doesn’t qualify for discharge, you might be able to set up a payment plan with them. They’re usually pretty flexible.
Yeah, I’ve heard their payment plans aren’t too bad. Still better than dealing with penalties piling up.