Can the IRS levy my wages while in Chapter 13 bankruptcy?
While in active Chapter 13 bankruptcy you are protected by the automatic stay therefore the Internal Revenue Service cannont levy your wages for income taxes owed. Any prior taxes years owed to the I.R.S. should be included and paid in your Chapter 13 bankruptcy plan.
If you recieve letter from the I.R.S. with intentions to levy your wages then call your bankruptcy Attorney at once. Your attorney will contact the I.R.S. to remind them you are in Chapter 13 bankrutpcy and demand all action to levy wages be ceased.
If you owe the I.R.S. for prior taxes years then you must make sure they are provided for in your Chapter 13 plan. The I.R.S. may have made an error or not updated your file. The worst thing to do when contacted by the I.R.S. is nothing.
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