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Tax debt can be repaid inside of a Chapter 13 repayment plan

Tax debt can be repaid inside of a Chapter 13 repayment plan. Many factors determine the amount of tax debt which must be repaid. Some types of tax debt may be discharged just like credit card debt (unsecured debt). The good news is this: the IRS and the bankruptcy courts use similar standards when determining the amount of tax debt to be repaid. Therefore, the IRS can use your financial documents prepared in the Chapter 13 case to make a settlement offer.