Expert: Terry Leeders - 6/19/2007

Question
QUESTION: We are sorry, but Steven True wasn't able to answer your question:

IN 1997 I FILED BK I listed state board of equalization for 15k the bk was discharged no
problem. last year the state board contacted me saying the 1995 tax liability was not old
enough to discharge and began a wage garnishment. I have changes jobs since then and filed
bk again listing them. Since filing they have isssued  another wage garnishment in spite
of recieving an automatic stay. I have a child support garnishment already for 25% and my
employer is honoring the garnishment in spite of the stay and 25% rule. what should I do
?


ANSWER: Your question is a bit hard to follow.  I can't tell what the debt was for to the state board of equalization.  You also mention tax.  There are only a few loopholes to discharge tax.  To be dischargable, there are numerous requirements.  First, the tax in question must be at least 3 years old at the time you filed.  Therefore, if it was a 95 tax and you filed BK in 97, then it is not dischargable.  Also, this goes only to income tax.  Your attorney is the best source of information regarding the dischargability of the debt, and they can take the appropriate steps to prevent a wage garnishment, at least while your case is pending, in most cases.


---------- FOLLOW-UP ----------

QUESTION: the tax was in 1995 it is the CA state board of equalization (sales tax)

Answer
Sales tax is non-dischargeable in bankruptcy.  Sorry.  There is a small loophole to discharge some income tax liability, but any other kind of tax is non-dischargeable. You would be best suited to work out some type of payment plan with the agency.  Best of luck to you.