Yes, income taxes can be discharged through bankruptcy. No, not all taxes can be discharged. Yes, Bankruptcy and Tax Law are very complicated, especially when they have to be applied together. You can be assured that your brother-in-law’s experience with bankruptcy and taxes is very likely going to be different than yours.

Bankruptcy can be a great tool to legally eliminate tax liabilities. You need to seek the advice of an attorney who understands the complex interaction between the Bankruptcy Law and the Tax Law.