IRS Debt? Chapter 13 can help
Some people file Chapter 13 bankruptcy because of IRS debt that they owe. Filing a Chapter 13 will allow for them to pay the amount they owe with zero interest and it stops the penalties and interest that they are incurring without the chapter 13. Some people allow it to get too far before they come in and file. They end up with a wage garnishment and then we file to stop it. Once the IRS is notified of the bankruptcy, they have to stop the garnishment, but keep in mind; it may take a little bit before they can get it stopped. Reality would be nice that it was automatic, but we are dealing with the government. If you find yourself in a spot where they are about to take it out of your wages, then you may want to consider filing the chapter 13 to stop the garnishment. When you file for the Chapter 13, you may find that the payment will be less than what they plan to deduct from your check. It is really up to you, but keep in mind that since they are the government, they will get their money one way or another. You may even find that they filed a lien on your house if you have a house so if you try to sell it, they will get their money too. There is no way around not paying the IRS or any other government entity.
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