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

Unfortunately, your question is outside of my general knowledge and I believe you would be better served by speaking with your bankruptcy attorney. If you do not have one, you may contact our office for a reference. It is my understanding that certain IRS tax obligations may be discharged in bankruptcy but recent income tax obligations may not be discharged. You would want to meet with an attorney to discuss your details to ensure filing is your best choice and to ensure it will accomplish your goals. Our office may be able to assist you with your tax obligations if they are not discharged in bankruptcy.

You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue. Thank you.

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.

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.

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.