Chapter13 Bankruptcy and the IRS
A chapter 13 is a payment plan and it is there for many reasons. One of those reason is if you owe the IRS money. IF you have a payment plan with them on your own there is interest and penalties added on each month. With the chapter 13 it will stop all interest and penalties and allow you 60 months to pay them off. With any of the debts older than 3 years and the tax returns were file on time, those debts can be discharged. While your taking care of the IRS your credit card debts can be either paid off at zero interest or discharge with out a payment to them.
The chapter 13 will fall off your credit 3 years sooner than the chapter7, meaning in 7 years instead of the 10 years.
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