How will filing for bankruptcy affect the IRS?
If you are going to be filing for bankruptcy, this will not so much create problems but it will mean that they can longer enforce any collection procedures or further action to recover any monies due. Should there be any assets that are currently being held (due to a tax lien being served) but not yet been sold then should you have a trustee which is in line with the bankruptcy chapters above, then he/she can request that such goods are sold and funds are sent directly to the creditors. Once a bankruptcy petition has been filed directly to the IRS then to prevent any further action being taken they will post what is known as a “bankruptcy hold” on the computer and your file. The Difference between Secured and Unsecured Creditors? At the end of the day even though you owe the IRS money in the eyes of the law they are just seen as another creditor, they are either a secured or unsecured creditor or sometimes a bit of both. This may seem a contradiction of terms but if you see below, you
