Owing the IRS or your state tax agency can feel overwhelming — but you don’t have to face it alone.
Whether your tax claims are best resolved through administrative proceedings before the IRS Examination, Appeals, or Collection Divisions of the IRS or state tax agency or eliminated through bankruptcy, we’ll help you understand your choices and find the right solution for you. On the other hand, if your tax debt is manageable and best resolved through certain financial management tools, free debt counseling may be all you need.
Tax debt is one of the most stressful financial problems people face. Interest and penalties pile up quickly, IRS letters arrive by the stack, and the risk of wage garnishments or bank levies can keep you awake at night. The good news is: there are solutions.
This website was created to explain, in plain English, when bankruptcy can help with tax debt — and when other approaches may make more sense. By the time you finish exploring, you’ll have a clearer picture of what options are available, and where to turn next.
Quick Facts About Tax Debt & Bankruptcy
- Yes, bankruptcy can erase tax debt. If the tax claim is based on a taxpayer’s filed income tax return and has aged sufficiently, it can likely be wiped out in bankruptcy.
- Bankruptcy stops IRS collections immediately. Garnishments, levies, and collection calls are paused the moment you file.
- Not every tax debt qualifies. Recent taxes, payroll taxes, and unfiled returns usually cannot be discharged.
Everyone’s tax debt story is different — and the right solution depends on your unique situation. Take the first step today. Whether that means structured debt counseling or legal help with bankruptcy, the sooner you act, the sooner you can move forward.
Not sure which path is right for you?
- If your tax debt is smaller or still manageable, debt counseling may help you get back on track.
- If your tax debt is older, larger, or truly overwhelming, bankruptcy may offer the best relief.