Chapter 7 and Chapter 13 and taxes

Taxes and Chapter 7 and Chapter 13 are not a complicated matter provided the debtor is a regular tax filer. It is the omission of filing taxes that appears more significant in bankruptcy than owing or paying. Provided you file your taxes every year and have not falsified any of the contents Chapter 7 may eliminate older tax debts and Chapter 13 will help you pay those tax debts. maybe at reduced or zero interest . This applies to federal taxes and not state taxes. If a levy has been filed on your property (personal or real) then that is a secured debts and will need to be paid for the levy to be removed. The levy removal may be negotiated depending on the debtors unique situation. However, it is advisable not to let a levy action occur. The IRS and US Attorneys Office will be thorough with thier tax scrutiny of your filings. Properly filed tax returns over three years of age with debt maybe discharged in Chapter 7 or Chapter 13 bankruptcy.