Lethal Weapon actor Gary Busey emerged from bankruptcy last week, discharging more than $50,000 worth of debts.
Busey, 68, filed for Chapter 7 bankruptcy in California last February, owing more than $500,000 to creditors.
According to TMZ, Busey’s bankruptcy will allow him to retain $26,000 in assets and discharge $57,000 in debt. However, Busey still owes more than $450,000 in debt to the federal government and the state of California in back taxes.
Although Busey was not able to discharge his back taxes, an individual filing for Chapter 7 bankruptcy may be able to if they meet certain requirements, which include:
- The tax debt is for income tax and not other forms of taxes like payroll or sales tax
- The IRS or state you live in assessed the tax at least 240 days prior to your bankruptcy filing
- Your tax return for the debt was filed at least two years prior to the bankruptcy filing
- Your tax return for the debt was due at least three years prior to the bankruptcy filing
- You did not commit fraud or refuse to pay the tax debt
Even if you do not meet the requirements listed above, you should still speak to a bankruptcy attorney. Through a Chapter 13 bankruptcy, you can reorganize your debts, including your back taxes, through a repayment plan. If you do this, it is possible that you could avoid further penalties on your tax debts.
Talk to our attorney about what bankruptcy can do for you. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
Law Firm of Kevin D. Judd