Can You Include Tax Debt In Chapter 13 Bankruptcy? Folsom Lawyer Explains

Yes, you can include certain tax debts in your Chapter 13 repayment plan, allowing you to manage them over time without accumulating additional interest or penalties.

  1. By including tax debt in a Chapter 13 plan, the IRS freezes interest and penalties, making your repayment more manageable.
  2. The repayment period in Chapter 13 can last up to five years, giving you more time to pay off your debt.
  3. Chapter 13 helps you consolidate your debts, providing relief from overwhelming tax debt while protecting your assets from seizure.
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