Struggles with debt can affect every area of your life. If you have fallen behind on your mortgage, credit card bills, medical debt or others, you may be feeling as if you are drowning. Collection letters and calls seem to come every day, and you may find it difficult to eat, sleep, and concentrate on your work or family obligations. After considering your options, you have decided to see if bankruptcy can bring some relief.
However, if your debt burden includes taxes, you will need to understand the rules regarding bankruptcy and federal debts. Taxes are a priority debt, which means bankruptcy may not relieve your obligation to pay them except under certain circumstances.