Dionne Warwick hopes Chapter 7 will get rid of old tax liens

There may be Illinois residents who don't know that there are certain types of debt that are not ordinarily dischargeable. Debts such as student loans and tax liens fall into that category. Fortunately, there are exceptions that allow certain classes of student loans and tax liens to be discharged in a Chapter 7 bankruptcy. Dionne Warwick is hoping that her tax liens fall into that exception and be discharged.

Dionne Warwick's troubles with the IRS began back in the 1990s. Since that time, she has paid about as much in penalties and interest as the principal balance had been. Now those tax liens have reached a point where they may be discharged in a bankruptcy. As a result, Warwick decided that it was in her best interest to file in order to finally be free of the liens.

According to Warwick, a business manager that she had back in the 1990s was not careful with her money. That person's mismanagement landed her in hot water with the IRS. That was the beginning of decades of battling that even included the IRS possibly losing Warwick's file for some time.

Most likely, there are taxpayers in Illinois that understand what Warwick has been through. However, many people may not know that it is possible to discharge at least some tax liens as long as they are over a certain age. Anyone struggling with the IRS may benefit from finding out whether his or her tax liens would qualify for possible discharge in a Chapter 7 bankruptcy. Like Dionne Warwick, those with old tax liens could finally be rid of them and have a fresh start financially.

Source: Atlanta Black Star, "Dionne Warwick Files for Bankruptcy to Clear IRS Tax Liens," March 26, 2013

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