Priority debts in bankruptcy

Federal Taxes and Student Loans. Income taxes, attorney’s fees and student loans are considered priority debts. Priority debts must be paid in full during your Chapter 13 bankruptcy. One advantage of filing Chapter 13 bankruptcy is that income taxes owed the IRS can be paid without further penalty or interest which would otherwise accrue outside bankruptcy. Your bankruptcy attorney may not practice tax law. If you are unsure when certain income taxes were due and payable you must contact the IRS or your tax adviser or a tax attorney.

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