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Turn out to be eligible to wipe the debt, you need to have filed a taxes for the government or State debt you would like to to discharge at least two years before your bankruptcy. Thus, even when the debt is over 3 years old, if you filed the return late and eighteen months has not passed, an individual cannot eliminate the Interest rates or State tax debt. Marginal tax rate is the rate of tax you pay on your last (or highest) level of income.
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