Taxes or Tax Liens
The majority of tax payers that owe Federal and State Taxes, pay tax delinquencies through a monthly payment plan; however, this can cause you to pay more taxes than when you began your payment plan. These payment programs charge you late penalty fees and interest each month until your tax debt is paid off, BUT...
Did you know, when filing a Chapter 13 bankruptcy you can pay off your delinquent tax amount over a 5 year period without monthly penalties and interest? Or that any tax returns filed timely and is over 3 years old and you still owe taxes, these taxes can be discharged in either a Chapter 7 or in a Chapter 13.
Did you know, if you have an IRS or State tax wage garnishment, a Chapter 13 bankruptcy will stop the wage garnishment, and your remaining taxes owed can paid without penalties or interest during your Chapter 13 bankruptcy?