Can filing bankruptcy stop an IRS levy?

Yes. For example, an IRS tax levy will come to a screeching halt upon the filing of a bankruptcy under Chapter 7 or Chapter 13 or Chapter 11. Filing bankruptcy triggers a federal court order called the “Automatic Stay” and even the IRS must back off once they get notice of a bankruptcy case number.

Any collection by any creditor, including the IRS, must stop once the case is filed. Bankruptcy can be the equalizer for the honest citizen or business. 

Fair Warning! Make sure you hire a tax lawyer who knows the bankruptcy and tax code, and who has consistently used the bankruptcy code to eliminate IRS tax problems. And make sure your lawyer has the capability to file bankruptcy electronically because this will permit tax relief at any time of the day, 365 days a week.

We encourage you to get the Faith Firm free book The Truth about Tax Settlement and Alternative Tax Solutions or give us a call and we can explain how it all works.