Paying IRS taxes is not at all an easy task all the times. For few individuals, the situations could be even worse especially, if they are on their way of bankruptcy. Instead of worrying in this situation, be acquainted with the IRS rules for tax bankruptcy and take control of your situation.
Most of the people wonder what they should be doing in order to obtain tax debt relief in these scenarios, and often face difficulties to find the answer to this question. In order to relieve your stress and make things easy for you in the difficult situations, here are the bankruptcy laws –
There are 2 types of bankruptcy laws – wage earner plans under Chapter 13 and liquidations under Chapter 7.
In Chapter 13, individuals are permitted by the court to negotiate on their
penalties levied by the IRS and get the interest dropped on the taxes or at least, lower it down to some extent. Considering all the circumstances, the court will then decide how much you can pay on monthly basis. When all the settlements are done, then you need to sign up the agreement along with IRS that will help you in paying your taxes in timely fashion.
Chapter 7 allows the person to get rid of debts and make a fresh start without worrying about your old bills and debts. This law doesn’t permit the claiming of IRS back taxes, but once the court determines the circumstances along with the IRS, then you may not need to pay any penalties and back taxes.