Tax slavery

Tax Slavery is a concept found in U.S. Bankruptcy Law where the creditor forces an individual debtor to work for the creditor, which is expressly forbidden. Tax slavery would occur if creditors force an individual debtor into Chapter 13 Bankruptcy because then the individual debtor would have to pay off the debt from their disposable income without their volition. In other words, the creditors would force the individual debtor into working for the creditor against the individual debtor's will for the duration of the bankruptcy. However, American case law states that the Bankruptcy Code forbids tax slavery, therefore the individual debtor may enter a Chapter 13 bankruptcy only upon their election. Compare this to a Chapter 7 Bankruptcy where the creditors may force the individual debtor into bankruptcy.



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