Ohio Bankruptcy Law - Taxes
11 U.S.C. 523. - Exceptions to discharge - provides (a) discharge under section 727, 1141, 1228(a),
1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt - (1) for a tax or a customs duty -
(A) of the kind and for the periods specified in section 507(a)(2) or 507(a)(8) of this title, whether or not a claim
for such tax was filed or allowed; (B) with respect to which a return, if required - (i) was not filed; or (ii) was filed
after the date on which such return was last due, under applicable law or under any extension, and after two years
before the date of the filing of the petition; or (C) with respect to which the debtor made a fraudulent return
or willfully attempted in any manner to evade or defeat such tax.
Ohio Bankruptcy Law - In Practice
Only taxes which were declared, due, and payable, more than two before filing Ohio bankruptcy are
dischargeable. Any deviation from full disclosure will prevent discharge. In practice, expect liens to attach
before the expiration of two years. Tax liens will be enforced against specific property regardless of filing.
The operation of law pertaining to federal debt relief is complex. State law statutes, federal rules, and
decisions rendered by courts combine to establish a local standard for Ohio Bankruptcy Courts. Anyone who
considers filing should, at a minimum, balance short term requirements to long term benefits. Each debtor is
different. The most valuable benefits are a personal choice, with availability dependent upon the application of
law to unique circumstances.
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