When you file a Chapter 7 or Chapter 13 Bankruptcy, the automatic stay of 11 U.S.C.§362 will stop collection activity, including collection activity conducted by the IRS and the State, in most, if not all cases. To make sure that your rights are protected, proper legal representation is a key to success.
While the automatic stay is a powerful statute, there
have been instances where revenue agents of the IRS have not fully
complied with bankruptcy laws. In a recent report conducted by the
treasury inspector (you can find the report here),
it was revealed that even with the automatic stay, the IRS, in some
instances, continued its collection activities and failed to fully
comply with the automatic stay. Debtors, with proper legal
representation, were more likely able to protect their rights under
bankruptcy law and stop the IRS. Those who were unrepresented may have
had a more difficult time protecting themselves.
To ensure that you have a successful bankruptcy filing it is important that you hire an experienced Phoenix bankruptcy attorney
to protect your rights under the bankruptcy laws. I offer free initial
consultations by phone or in person to help guide you toward a
successful resolution of your financial problems. Call to schedule a
free consultation. You have nothing to lose but your debt.