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 8 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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