IRS Debt in Bankruptcy

Most of the time the IRS debt is not dischargeable in bankruptcy.  There are exceptions to that general rule, however.  If all the prior years’ tax returns are on file, the taxes are income taxes, the taxes are three years old, and there is no equitable lien filed by the IRS then an adversarial proceeding may discharge the IRS debt in a Chapter 7 bankruptcy.  The taxes should also be discharged in a Chapter 13 bankruptcy.

However, if you do not fall within the exception to the general rule that the taxes are non-dischargeable then a Chapter 13 bankruptcy can help you to stop the penalties and interest that the IRS is assessing against your unpaid taxes.  Although the IRS is typically non-dischargeable, they are an unsecured creditor.  As such, they are not allowed to charge you interest in a Chapter 13 plan.

Contact Our Texas Bankruptcy Law Firm For Help Today

If you’re facing bankruptcy in Texas, we’re here to help. Contact the experienced bankruptcy lawyers at Pelley Law Office, L.L.P., today to schedule a free consultation.

We proudly serve Plano, Dallas, Sherman, and the surrounding areas.

Pelley Law Office L.L.P. – Plano Office
Address: 1312 14th St, Plano, TX 75074
Phone: (972) 608-0335
Hours: 24/7

Our firm is located near you. Find us with our GeoCoordinates: 33.0180322,-96.6952916,863

Pelley Law Office L.L.P. – Sherman Office

Address: 905 N Travis St, Sherman, TX 75090
Phone: (903) 813-4778
Hours: 24/7

Our firm is located near you. Find us with our GeoCoordinates: 33.6445846,-96.6113141,857