Bankruptcy can provide relief from IRS debt and the tax man. The automatic stay in bankruptcy stops even collection actions by taxing authorities, including garnishment and seizure.
These provisions apply equally to state and federal tax agencies.
The precise measure of the relief available in bankruptcy depends on a number of factors including
- the kind of tax involved
- the age of the tax
- whether a return was filed
- the chapter of bankruptcy selected
Levies, garnishments and seizures can be stopped immediately; generally taxes that are more than 3 years old can be discharged. IRS and other tax debt less than 3 years old can be paid through a Chapter 13 plan overtime without all the penalties and interest.
Bankruptcy Attorney John Hicks has helped hundreds of people get relief from IRS and other tax debt. Call John (248) 542-1500 for a free consultation outlining the best way to take care of your IRS debt.