If you owe Income Taxes for a tax year more than 3 years prior to filing your Bankruptcy Petition, those Income Taxes are usually dischargeable provided you filed your Tax Return on time and have not been recently assessed by the IRS. Income Taxes for years less than 3 years prior to filing your Bankruptcy Petition are non-dischargeable. Chapter 13 Bankruptcy does, however, allow you to pay these non-dischargeable taxes over a period of 3 to 5 years without further Penalty or Interest. In addition, in a Chapter 13 Bankruptcy, you won't have to pay any past penalties even if the underlying taxes are non-dischargeable. These savings can be enormous.