Legal Question in Bankruptcy in Hawaii

Re: Can you claim bankruptcy even if you owe back income taxes?

Whether or not somebody has paid taxes does not

have anything to do with whether they can file

bankruptcy. Your friend can file bankruptcy, but

your friend may have some problems.

First off, taxes in general are not wiped out by

the bankruptcy. Also, your friend will have to

fill out the bankruptcy forms honestly and fully.

That will mean listing the unpaid taxes, even

though he may believe he doesn't owe them.

We have had tax protestors file bankruptcy in

this district, and some of them find their

bankruptcy cases dismissed without getting debt

relief, because they are taking advice from tax

protestor groups and not from licensed attorneys.

There are many good debtors' attorneys in

Hawaii, and their fees are in general quite

reasonable. Your friend should talk with one of

them about his personal situation, and whether

bankruptcy would be appropriate.

Good luck.