What Happens to Your Family If You Owe Back taxes in Bankruptcy? Back tax is one of the most prominent reasons why people file for bankruptcy relief. Income tax debt is probably the most common type of debt people owe; although this type of debt is not completely discharged during bankruptcy, a discharge may be given on some old tax debt.  Let’s expatiate more on back taxes to educate you on the best ways to handle back taxes  Is Income Tax Debt Dischargeable in Bankruptcy?  Bankruptcy does not discharge most of the debt owed to the government—income tax is one of those debts that can’t be discharged. However, in an…