Internal Revenue Service

Chapter 7 Bankruptcy is commonly referred to as “liquidation” or the “wipe-out” kind of bankruptcy.

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GARNISHMENTS, LEVIES & FEDERAL TAX LIENS

If you owe money to the Internal Revenue Service (IRS) and they have either threatened a garnishment, levy or tax lien, it is not too late. If you qualify, you can file bankuprtcy to stop the levy or garnishment. If the taxes are not dischargeable, you can pay them out over a 5 year period in a Chapter 13. You can keep your assets intact (bank accounts paycheck, house, etc.) and make the payments. If there is a federal tax lien, you must repay the IRS debt with interest through a Chapter 13. If you file Chapter 7, tax liens and recent tax debts will still exist after the case is over.

DISCHARGING IRS TAXES

Some IRS taxes are dischargeable. There are 5 basic rules as to whether you can discharge, or wipe out, your IRS debt. Call me to schedule a consultation and we will determine if your taxes are dischargeable or if we need to pay them out in a Chapter 13 plan. Even if you have to pay it out in a Chapter 13 plan, as soon as you file, the interest and penalties stop, making the repayment of these taxes much more manageable. If you file a Chapter 7 and the IRS debt is dischargeable, you make no payments and the debt is discharged.

FIXING INCORRECT ASSESSMENTS OF YOUR TAXES

If the IRS says that you owe some amount that is incorrect, you can file an objection to their claim in Chapter 13 and have the court decide on the correct amount owed. In this instance, you will likely want to consult with a good tax accountant. If you need help finding one, let me know and I will be happy to give you the name and number of a few reputable people who can assist us in objecting to the IRS claim.

MISSING TAX RETURNS

Upon filing bankruptcy, you must submit your last two tax returns for review. If you do not have these returns, we can request a transcript from the IRS by filling out a simple form. If you need us to do this, just let me know.

If you’re looking for relief from debt or assistance with Chapter 7 bankruptcy, we are here to help. We offer a free confidential, no obligation consultation to discuss your personal situation. Please call 281-847-4345 for immediate assistance or send us a message.

 

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