Credit card companies may file a lawsuit to enforce legal ways to collect from debtors when accounts go unpaid. If the credit card company itself doesn't pursue collection, then a collection agency may decide to pursue if they purchased the debt from the original creditor. Unless you provide evidence that the debt has been paid [...]
Solutions to Resolve Tax Debt The Internal Revenue Service (IRS) offers multiple methods for taxpayers to settle their tax debt . Many find it easier to just ignore what they owe but this only makes things worse. The longer you put off paying your taxes the more you will owe penalties and interest. If you [...]
Bankruptcy and Unpaid Income Taxes Certain income tax debt may qualify for discharge through bankruptcy but you need to have your income taxes filed. It is unlikely bankruptcy will wipe out unfiled tax debt but there are specific requirements that need to be met in order for tax debt to be successfully discharged. Chapter 7 [...]
Wage garnishment is an action pursued by creditors to help satisfy outstanding debt. The action allows them to take paycheck earnings and have them automatically forwarded to creditors. Bankruptcy may stop the garnishing process and even collect wages that have been garnished under certain circumstances. When bankruptcy is filed the automatic stay goes into effect [...]
Requirements and Guidelines to Qualify for an Offer in Compromise An offer in compromise lets taxpayers settle tax debt for less than the original amount that is due. While the paperwork for the process can be obtained by the taxpayer who is seeking to apply, it has been recommended to work with a tax expert [...]
What is an IRS Wage Garnishment? IRS wage garnishment , also known as a wage levy, is a forced form of collection imposed by the Internal Revenue Service (IRS). This action takes place when a taxpayer fails to pay taxes. The process allows the IRS to withhold a certain percentage of paycheck earnings to put [...]
In order to avoid getting into tax debt, you must file your tax returns promptly and accurately. Keeping a file of your transaction records is very important so that you don't miss out on anything when it's time to file your tax return. However, they can accumulate over time so you need to check your [...]
Eliminating Tax Debt in Bankruptcy It is possible to have certain tax debt eliminated in bankruptcy but under special circumstances. While you can include them in your bankruptcy filing along with other outstanding debt, in some cases, you'll still be responsible for them at the end of a Chapter 7 bankruptcy or make payments on [...]
What You Should Know about Tax Liens A tax lien is placed by the Internal Revenue Service (IRS) when taxes have not been paid. Basically, it's a claim from the government on your property and once it is issued, it can attach to just about anything you own. When the IRS places a tax lien [...]
Bankruptcy and Income Tax Debt Dealing with income tax debt can be frustrating and for some, overwhelming. Bankruptcy has been known to help deal with credit card debt , medical bills and even helping people keep their homes, and the process may help with income tax debt. It's not uncommon for consumers to ask about [...]