Both the Internal Revenue Service and in Arizona, the Department
of Revenue can take wages, bank accounts, and other property through
a levy. The government does not need a judgment, and it is not
limited to one-fourth of your pay.
Chapter 7 and Chapter 13 stop tax levies. Many taxes are not
discharged under Chapter 7 [11
USC �523(a)(1); see also 11
USC �507(a)(8)]. The government will still be able to
collect those taxes after a Chapter 7 bankruptcy is finished.
In Chapter 13, taxes will usually be paid from the plan payments [11
USC �1322(a)(2), 11
USC �507(a)(8)].
What stops the liens and levies? See Protection
from Creditors.
What if you had a prior bankruptcy within the last year?
See the Caution
on the Protection from Creditors page.
What if you had a prior bankruptcy within the last 8 years?
See Who
is Eligible.
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