Do you owe the IRS money? Are you unsure what to do? If so, you may be wondering how filing for bankruptcy can help. Your first step should be to make an appointment with a qualified bankruptcy attorney to hear about how bankruptcy can help your situation.
A Chapter 13 will enable you to set up a payment plan, while eliminating a fair amount of interest and penalties.
A Chapter 7 takes less time. This will stop the IRS collections process for a short amount of time. However, once the bankruptcy if over, they will resume. Keep in mind, you should only use Chapter 7 if you have debts that qualify for discharge.
Here are some things to keep in mind:
You should know that a Chapter 7 bankruptcy will not remove your prior recorded tax liens. However, a Chapter 7 bankruptcy will keep the IRS from garnishing your wages or bank accounts. It will also remove your personal obligation to pay the debt. Did the IRS record a tax lien on your property before you filed for bankruptcy? If so, the lien will remain. Meaning, you will need to pay off the tax lien or wait for the lien to expire if you want to sell the property.
Before you take any action, be sure that you are informed. At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together we would like to get to know you and we would like you to get to know us. This is to make sure you are the right fit for us and that we are the perfect fit for you, so that you can be completely comfortable sharing even the most intimate and difficult details of your case with us so we can offer you representation to the fullest extent of the law. Call us for a free consultation to find out the options that will work best to help eliminate your IRS tax debt.