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Can Chapter 13 Bankruptcy Help With An IRS Tax Levy?

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Can Chapter 13 Bankruptcy Help With An IRS Tax Levy?

You’re facing one of the most feared situations any taxpayer can face: a tax levy. The IRS has far-reaching powers to enforce a tax levy, including seizing your assets and property. If you receive notification of a tax levy, delaying your response can add to the penalties you owe and may cause the IRS to take further action. Contact an experienced bankruptcy attorney as soon as possible about tax levies and how you may be able to use Chapter 13 bankruptcy to protect yourself when the IRS is acting against you.

What is a Tax Levy?

A tax levy is essentially a claim on your assets by the IRS. When you owe money to the IRS and fail to pay it off for a long period of time, they are permitted to seize your personal property, garnish your wages, drain your bank accounts, sell vehicles you own, and pursue the seizure of your real estate – including your home. They can even contact your employer, employees, vendors, customers and other parties in an attempt to establish your financial status and gain control of your assets. For you, it can be a scary situation, worthy of your concern.

How Do I Get a Levy Released?

There are some circumstances that would cause the IRS to release your levy quickly. You may be able to prove that you don’t owe it in the first place or that you already paid the money. If you can prove that it is causing you an undue economic hardship that severely impacts your basic living expenses, they may release the levy. Setting up an installment agreement or making special arrangements with the IRS is another route. However, tax levies are sometimes in place for long periods of time, causing ongoing headaches while the IRS pursues its action against you.

How Does Chapter 13 Bankruptcy Protect My Assets?

When you work with a bankruptcy attorney, they can help you protect your assets and prevent the IRS from taking them away. Under Chapter 13 bankruptcy, your wages, property and belongings are shielded from the IRS for a period of time while you work through a payment plan. This keeps your assets out of reach of the IRS and gives you more time – usually a five-year period – to clear up your financial picture. This can be a huge relief at a difficult time when the IRS is putting pressure on you to pay.

Will the Plan Be Affordable for Me?

Chapter 13 bankruptcy is designed to be affordable for you, so you can get your finances back on track. Under Chapter 13, you will create a detailed repayment plan that allows room for your basic living expenses. You may be able to protect your home, car, tools you need to work, and other personal property. Work with a bankruptcy attorney to understand this option and put it to use for you. It’s a powerful way to protect yourself from IRS tax levies and pursue a fresh financial future.

Sawin & Shea – Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy.  We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.

Video Transcript

Tax levy. Probably one of the most fearsome things that consumers face. The Internal Revenue Service can seize your bank accounts, can seize your assets, and can pursue and garnish your wages, and even sell your property. If you have received a tax levy, you cannot delay.

One option for you is to look at bankruptcy, specifically a Chapter 13 bankruptcy, to help you resolve your tax situation. In a Chapter 13 bankruptcy, we can prevent the Internal Revenue Service from seizing or pursuing your assets through the court’s protection. In a Chapter 13 bankruptcy, we can help you structure a plan to repay these tax debts over a five year time period. And that prevents the Internal Revenue Service from garnishing your wages.

If you need a plan that you can potentially afford and prevent the Internal Revenue Service from seizing the things that you need, your wages, property, and belongings, please give us a call, we’d like to help you.

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