If your debts have gotten out of control, then you’re more than likely considering filing for bankruptcy. So, what are the best actionable next steps to take? There are three main types of bankruptcy that you may qualify for, all of which can help you either get out of debt entirely or make your debts more manageable. While that easily works for common debts like those created by credit cards and other purchases, will it work for tax debt? What if you owe the IRS a lot of money? While some tax debts may be dischargeable through a bankruptcy, most are not, leaving you with a large bill owed to the IRS.
When you owe money to the IRS, they will do everything that they can to collect that debt. If you ignore the debt long enough or owe a large sum of money, the IRS will file a tax lien on your property. But first, you’ll receive a number of notices which allow you time to reach out to them in order to set up a payment plan or file for bankruptcy before they will actually seize your property and sell it at auction in order to recoup the money. However, this will happen if the debt is ignored long enough. The IRS wants you to pay what you owe and will go to great lengths, if necessary, in order to collect the money that you owe them.