Bankruptcy Can Help with IRS Taxes

Of all the creditors you are facing or may face in your lifetime, the Internal Revenue Service is the most powerful.  The IRS has significant collection powers unlike anyone else.  Moreover, federal law allows the IRS to garnish and lien your property without a Court Order and with few requirements.  As the most aggressive creditor in our nation, the IRS can use its enormous power to attack your wages, bank accounts, social security payments, accounts receivables, insurance proceeds, real property, and, in some cases, your personal residence.  

After satisfying a few simple requirements, the IRS can issue a special garnishment known as an "administrative levy."  This levy can have disastrous impacts on your life, including bank and wage garnishments.  Fortunately, once a Bankruptcy is filed, the IRS must STOP all collection actions.  The Bankruptcy Code provides an "automatic stay" - or absolute Bankruptcy protection - which completely terminates all collection activities, whether the IRS knows about the Bankruptcy or not.  This legal injunction continues until the Bankruptcy dischargeis entered, the case is dismissed, or the stay is lifted by the Bankruptcy Court.

Many people think tax debts are not dischargeable in Bankruptcy.  Not so!  In general, an income tax debt may be discharged if the tax is more than three years old.  Even if the tax debt cannot be discharged, the IRS cannot garnish wages or put liens against your property during the Bankruptcy case (which can be up to five years during a Chapter 13 Bankruptcy).  During that time, some or all of the tax debt can be repaid and no new tax penalties will accrue against the prior debt.

If you are facing problems with the IRS, we can help.  My office can assist you with a Chapter 7 or Chapter 13 Bankruptcyand protect you from IRS garnishments, levies and other penalties.  Depending on your circumstances, you may be able to repay your obligation over time or completely discharge the debt.  To schedule a free consultation with a  Houston Bankruptcy attorney and discuss your unique situation, please call the Law Office of Nicholas R. Westbrook at (713) 893-6204.  I will explain your legal rights and determine if we can resolve your income tax burdens.  The road to financial freedom starts here.