Federal Tax Levies

[matthys69]

I don't know if anyone can answer this question or not.... Can a Chapter 7 bankruptcy stop a federal tax levy from garnishing my wages? My wages are currently getting garnished because I owe the IRS. I plan on reconciling my arrears and setup a reasonable payment plan with them. Will presenting the Notice of Automatic Stay to payroll at work immediately stop the garnishment? I spoke with payroll and they informed me that they need a release from the IRS which I think is inaccurate. I thought that once a person files CH 7 that any and all kind of action is stayed. Anyone? Thanks!

[HHM]

Filing chapter 7 can and should stop the garnishment, at least temporarily, but unless you have other reasons to file BK, its not the best way to deal with this as once you start a chapter 7, you cannot simply dismiss it.