Bankruptcy’s automatic stay stops the IRS and state tax authorities as well as the run-of-the-mill creditors.
All creditors must cease collection actions after a bankruptcy is filed.
If you’ve gotten a notice of intent to levy or even if the IRS has served a wage garnishment, it is not too late to file bankruptcy.
After you’ve filed, collection action must stop.
Wiped out?
Whether taxes and tax liens survive the bankruptcy discharge depends on the chapter you’ve filed and the age and other characteristics of the tax.
More about taxes in bankruptcy
How bankruptcy treats taxes
Chapter 13 instead of offer in compromise
Bankruptcy & tax FAQ
Tax liens in bankruptcy
Bankruptcy is tax free
Image courtesy of Alana Holmberg
