How Do You File Bankruptcy On Tax Liens?
There are two types of personal bankruptcy, chapter 7 and chapter 13. Both types of bankruptcy allow a debtor to claim debts owed to the Internal Revenue Service (IRS) and possibly discharge those debts, depending on the bankruptcy plan. A tax lien happens when the IRS enforces debts owed on taxes that haven’t been paid by securing the amount of the taxes owed on the debtor’s property, such as real estate. Since a tax lien is a secured debt, it may have to be paid in full under a personal bankruptcy plan. Gather all of your account statements, bills, pay stubs and asset information, including tax information, to prepare to meet with a lawyer. You will need all income information for the household, including any bank accounts and recent pay stubs. Make sure to bring any tax returns involved in your tax liens. You’ll also need contact information for all creditors including the IRS and credit card companies and mortgage information. Visit a bankruptcy attorney to discuss filing for bankr
