Tax Debts and Bankruptcy

[VJS9277]

Hello:
Does anyone know how tax debt plays into Chapter 7 Bankruptcy? This is the second time I am filing (I filed in 1996) and was wondering given the economic circumstances the IRS and state tax agencies would be a little more compassionate. Also, I currently owe the IRS and they have attached my wife's home (I am not the mortgage holder or one the deed). Does anyone know how this works? Please advise.

[HHM]

Read this thread

http://www.bkforum.com/showthread.php?t=24853

If you still have more questions, then ask away.

[justbroke]

Hello:
Does anyone know how tax debt plays into Chapter 7 Bankruptcy? This is the second time I am filing (I filed in 1996) and was wondering given the economic circumstances the IRS and state tax agencies would be a little more compassionate. Also, I currently owe the IRS and they have attached my wife's home (I am not the mortgage holder or one the deed). Does anyone know how this works? Please advise.

LOL, you said compassionate.

You need expert tax advice. First, it will depend upon how old the tax debt is, when you actually filed, and/or when the tax was assessed. Since the IRS has already levied property, that's not yours, you need to deal with that. If you're in a community property State, that may be why the IRS levied against the home.

First, seek a professional tax attorney and see if you can deal with it via the standard mechanisms (OIC, installments). Then see a Bankruptcy Attorney who is good with tax cases, to see how you should proceed.

[southernbelle]

Was the tax debt owed prior to you marrying? If so, can they lien against her home in a community property state if his tax was owed before marriage?