Does a bankruptcy filing stop an IRS garnishment?
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Does a bankruptcy filing stop an IRS garnishment?
Asked on August 20, 2012 under Bankruptcy Law, Texas
Answers:
Malissa Walden / Kansas City Bankruptcy Attorneys Walden & Pfannenstiel, LLC
Answered 12 years ago | Contributor
When you file for Bankruptcy an Automatic Stay will go in to place. This means that collection efforts from all Creditors must stop -- this includes a garnishment from the IRS.
However, Creditors may file a Motion for Relief from the Stay, meaning they can start collecting on the debt once again.
Tax debt is not typically discharged in Bankruptcy, but may be handled through a payment plan in a Chapter 13. A qualified Bankruptcy attorney will be able to advise you on your best course of action.
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