Q: Along with my other debts, I owe back taxes to the IRS. Can Chapter 13 bankruptcy help?
A: 7 or. 13 could help but you need to have a local attorney review your financial situation.
A: I am an Illinois attorney, since I am a tax and bankruptcy attorney I have experience with how to treat taxes in chapter 13.
Here are some things chapter 13 can do for your tax problems.
> The Chapter 13 will put an immediate stop to IRS collection activities.
> The Chapter 13 will Allow you to pay back the Federal and State taxes without interest (zero interest ). Outside the Chapter 13, if you do an installment plan with the IRS, you would pay interest to the IRS over the entire time you are paying them back.
> If the taxes are old enough the bankruptcy code will allow you to pay back the taxes for "pennies on the dollar." This is called a bankruptcy "cram down."
> Chapter 13 will allow you to strip your second mortgage from your title and pay back tje second mortgage like a credit card. That means you may be able to "cram down the second mortgage.
You are in Illinois call me for further information: Thinking Outside the Box Law, Inc./Jon Dowat attorney at law.
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