| The answer to that question is - most likely, not. First | | | | Bankruptcy will have a gravely negative impact on |
| of all, bankruptcy is a very serious thing and you must | | | | your credit rating. A bankruptcy filing remains on your |
| not enter into the decision to file bankruptcy lightly. | | | | records for ten years. This will make it harder for you |
| Bankruptcy has long-term negative impacts. There are | | | | to buy a car, rent an apartment, receive a loan, or |
| two types of bankruptcies for you to consider before | | | | mortgage, and even affect your insurance premiums. |
| deciding which might be right for your circumstances. | | | | Lenders will consider you a bad risk and refuse to |
| Chapter 7 is liquidation bankruptcy. Under this | | | | extend credit to you. |
| arrangement, all your debt is liquidated, non-exempt and | | | | If the major reason you are considering bankruptcy is |
| dis-chargeable, alike. Income Tax debt over three | | | | due to tax debt, reconsider. You can usually work out |
| years old could be all or mostly erased. More recent | | | | a plan with the Internal Revenue Service to repay your |
| tax debt cannot be included. | | | | debt over time. On the other hand, if your tax debt is |
| Chapter 11, 12, or 13 is repayment bankruptcy. Under | | | | substantial and you are certain it will be discharged in |
| this arrangement you are able to repay your debt | | | | bankruptcy, it might be the right the thing to do. |
| during a lengthened amount of time. Your taxes must | | | | Before making considerations like this, it is always good |
| be repaid within a specific amount of time, just like the | | | | to consult a tax professional or financial consultant. |
| rest of your debt. | | | | They can steer you toward options that really work, |
| There are many negative aspects of bankruptcy. The | | | | while helping you to avoid the stigma of bad credit and |
| negative aspect of bankruptcy which applies to taxes | | | | substantial tax liability. |
| is that you can come out of your bankruptcy and still | | | | You may also want to consider the option of a tax |
| face those tax debts. This is because the law allows | | | | resolution specialist to help you with your IRS tax debt. |
| for the Internal Revenue Service to be given extra | | | | Often, a tax resolution specialist can help you negotiate |
| time to collect your debt in proportion to your | | | | an installment plan to pay your Internal Revenue |
| bankruptcy. The remaining statute of limitations time on | | | | Service debt without the negative connotations of |
| your debt is extended for the term your bankruptcy | | | | bankruptcy. |
| was pending plus one hundred-eighty days. | | | | |