2006-07-28 02:51:44 · 8 answers · asked by SaMosley43 1 in Politics & Government ➔ Law & Ethics
Filing for bankruptcy will stop a tax levy (garnishment) by the IRS, but in most cases, only temporarily. Most* tax debts are not dischargable in a Chapter 7 or Chapter 13 bankruptcy. There are some exceptions to that, so you would want to ask your attorney if your tax debts constitutes an exception.
In Chapter 7, tax debts are listed as an unsecured debt that has priority. It means that in most cases, it survives the bankruptcy, and at the conclusion, if you have not worked out a plan with the IRS, they will continue to garnish your wages. They also will file a tax lein against you, which even if your tax debt is erased in the bankruptcy, the tax lein survives... meaning to sell or buy real property, you have to satisfy the tax debt.
In Chapter 13 bankruptcies, most plans require that you pay the tax debt in full as a part of the Chapter 13 plan. If the debt is so high that it can't be paid as part of the plan, then it is given a priority and is paid under the plan but then is not discharged like the other debts.
You should consult a bankruptcy specialist in your state who can advise you on the particular circumstances of your case. If you don't know a bankruptcy attorney, contact your local or state bar association for a referral.
2006-07-28 03:36:43 · answer #1 · answered by Phil R 5 · 0⤊ 0⤋
possibly. If there are no components, maximum taxes for the years 2007 and past could be wiped out. in case you filed a financial disaster 13 you ought to pay the tax due yet no longer outcomes for later years. See a real attorney in this one through fact this is frustrating.
2016-10-01 04:32:18 · answer #2 · answered by nein 3 · 0⤊ 0⤋
unfortunately i am in this boat and yes it does stop it...but it can produce other problems..for example if you are in chapter 13 like i was ..it was designed for me to pay back everything I owed..but over time so I could afford to live...my job of 25 years went to india and I had been designing cars my whole life and knew nothing else..so I had to relocate..well I cant afford to keep my house and live out of state so I had to convert to chap 7 and let the bank forclose..so .if you plan to stay where you live(if you own) andb wnat to pay back the irs over time a chapter 13 is not a bad way to go...
2006-07-28 03:09:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No you can't go bankrupt on income taxes but... since you will have little or nothing afterwards you might be able to negotiate your IRS debt way down. Get someone who does this to go to IRS with you.
2006-07-28 03:33:08 · answer #4 · answered by frankie59 4 · 0⤊ 0⤋
hmm it probably will. The again it is the IRS and those guys dont play around
2006-07-28 02:55:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No it will not, been there ,am there,it doesn't stop .ever even if you die.....I'm sorry I'm a tad bitter at the trouble a past business partner has subjected me to thru her stupidity ..Never take a friend as a business partner ...
2006-07-28 03:07:07 · answer #6 · answered by Yakuza 7 · 0⤊ 0⤋
no
2006-08-01 01:54:25 · answer #7 · answered by george.fehringer@sbcglobal.net 2 · 0⤊ 0⤋
probably
2006-07-28 02:57:36 · answer #8 · answered by sam_ahd_madu 1 · 0⤊ 0⤋