Taking On The IRS In Bankruptcy

The IRS is very aggressive in collecting past due tax debts. The IRS has the power to garnish your wages, freeze your bank accounts and seize your assets.

Fortunately, bankruptcy may provide the critical relief you have been seeking. Many people have heard that tax debts may not be discharged in bankruptcy, but that is not entirely true. Under limited circumstances, some IRS tax debts may be discharged in a Chapter 7 bankruptcy. If an IRS tax debt is not dischargeable, you may still be able to obtain critical debt relief through a Chapter 13 bankruptcy.

Restructuring IRS Tax Debts Through Chapter 13 Bankruptcy

Many of our clients have obtained relief from tax debts through a Chapter 13 bankruptcy. In fact, tax relief is the second most common reason why our clients file for Chapter 13 bankruptcy, second only to home foreclosure.

If you have tax debts, we will first examine the nature of the debts to determine if they may be eligible for a discharge through Chapter 7 bankruptcy. If that is not a possibility, you may be able to repay your tax debts gradually over a three- to five-year debt repayment plan in a Chapter 13 bankruptcy. With your Chapter 13 debt repayment plan, you can avoid further IRS collection efforts, thus avoiding or halting a wage garnishment, property seizure or other adverse collection measure. In addition, you will avoid further interest and penalties that would otherwise accrue as a result of your past due tax debt.

Schedule A Consultation

To schedule a consultation with the Law Offices of James V. Sansone, call us at 707-623-1875 or contact us by e-mail.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.