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Failure to maintain your taxes current with the IRS or Department of Revenue (PA) can create a mountain of liability that is difficult to manage. Year after year, principal, interest and penalties grow. Eventually, the IRS and Department of Revenue will file liens against your assets, making it even harder to resolve on your own.

Michael Schwartz can use the bankruptcy code to force the IRS into an affordable payment plan. In many cases,Ā a bankruptcy will discharge some or all of the tax liabilities of the IRS. Michael SchwartzĀ has experience to evaluate your situation and know how bankruptcy will help to resolve IRS debt. The Law Office of Michael Schwartz can help you understand your options to best deal with the IRS and Department of Revenue. In many cases, Chapter 13 bankruptcy is an ideal way to manage debt owed to the IRS and Department of Revenue.


While the IRS and Department of Revenue do offer some installment agreements to repay tax liability, these installment agreements do not stop interest and penalties from accruing. As a result, it is very difficult to pay down on the principal of the debt - most of the payment is typically going towards penalties and interest.

Very often Chapter 13 bankruptcy provides the best way to resolve tax liability. Utilizing Chapter 13 bankruptcy, IRS lawyer Michael Schwartz can force the IRS and Department of Revenue into a five year payment plan without future penalties and interest, resulting in all payments through bankruptcy going towards the principal of the amount owed at the time of filing. Additionally, depending on the circumstances, some or all of the tax debt could be discharged without having to pay it back through the payment plan. Generally speaking, the older the tax debt, the better chance that it will be discharged.

The amount that is required to be paid through the bankruptcy plan depends uponĀ a number of factors including your income, expenses, assets and nature of the taxes owed. Tax debt from recent years is typically paid back in full (priority) without ongoing penalties and interest while older tax debt may be classified as unsecured with less than the full amount required to be paid back. This is a complex area of bankruptcy law and you should seek an experienced bankruptcy lawyer to assist you in this analysis. Generally though, Chapter 13 bankruptcy is often an effective way of resolving debt owed to the IRS and Department of Revenue.


The IRS and Department of Revenue offer payment plans (installment agreements) which typically work best with small amounts of tax debt. By making application directly to the IRS or Department of Revenue, an agreement can be negotiated to repay the liability directly to the IRS or Department of Revenue. Very often, these types of agreements are required to be paid over a relatively short period of time, creating a high monthly payment. The IRS also offers longer term agreements if you qualify. These types of agreements can be costly because, in addition to repaying the principal debt, ongoing penalties and interest are required to be paid. This is one reason why bankruptcy is often is a betterĀ option.Ā Ā 

For liability to theĀ IRS and Department of Revenue, you may also consider submitting an application for an Offer in Compromise. With an Offer in Compromise, the applicant submits a proposed settlement to the IRS to resolve all debt owed through a lump sum payment or payment arrangement for less than the full amount owed. Applications for these types of offers require full disclosure of assets and income. Traditionally, they can be costly to file with a small chance of acceptance.


Michael Schwartz is a bankruptcy lawyer experienced in dealing with tax debt owed to the IRS and PA Department of Revenue. At your free consultation, he will discuss your various options and recommend the best way to resolve your debt owed to the IRS or Department of Revenue. Contact the Law Offices of Michael Schwartz for a free consultation in one of his convenient offices located in Bucks County and Delaware County. Make Michael Schwartz your bankruptcy lawyer near me!

Michael Schwartz Attorney Bankruptcy Lawyer Chapter 13

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