Will bankruptcy give me a grace period with the IRS? 5 Answers as of September 16, 2010

I owe a substantial amount of money to the IRS for withholding taxes. If I file for bankruptcy will I be given the opportunity to set up an installment plan with the IRS as well as with other creditors?

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Fasel, Fasel, & Nefulda, LLP
Fasel, Fasel, & Nefulda, LLP | Thomas Fasel
Under Chapter 7, federal and state taxes that were first due less than three years before your bankruptcy filing date are are generally not dis-chargeable. However, you or an attorney may contact the IRS directly to negotiate an installment plan or offer-in-compromise with the IRS.

To discuss further, please contact me.
Answer Applies to: California
Replied: 9/13/2010
Ariano & Reppucci
Ariano & Reppucci | Chris Ariano
Some income tax debts are dischargeable. If yours are not, you can enter into an repayment agreement with the IRS. To discuss further, please contact us.
Answer Applies to: Arizona
Replied: 9/13/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
Depends on what type of bankruptcy case you file. A Chapter 13 will allow you to propose a repayment plan to the IRS and other creditors.

A chapter 7, however, does not propose a payment plan. The bankruptcy might stay the IRS for a couple of months while the case is pending but you would still have to pay the debt.

If you already have an IRS garnishment, the Chapter 7 filing will not stay the garnishment.
Answer Applies to: California
Replied: 9/13/2010
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