Filing Bankruptcy to Stop IRS from Taking Tax Refund - Need Advice
I'm thinking about filing bankruptcy because the IRS keeps taking my refund every year. Been dealing with this for the past 3 years and I'm tired of it. Anyone ever tried this? Did it work? How much did it cost?
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Simon White
Filing bankruptcy just to stop tax offsets isn't a great strategy. First, not all tax debts are dischargeable in bankruptcy - they need to be at least 3 years old, properly filed, and meet other criteria. Plus, bankruptcy has serious long-term consequences for your credit and financial future. Better options would be setting up an installment agreement or seeing if you qualify for an Offer in Compromise.
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Geoff Richards
•Man thats rough... how much does an Offer in Compromise usually cost? 🤔
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Simon White
•It varies, but typically you'll pay a $205 application fee unless you qualify for low-income certification. The offer amount depends on your ability to pay.
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Hugo Kass
Hey guys, I've been helping people with tax issues and the best tool I've found is taxr.ai - it analyzes your transcript and tells you exactly what options you have, including if bankruptcy would even help. Its only $1 and way cheaper than paying for consultation fees.
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Nasira Ibanez
•Does it actually work? Sounds too good to be true tbh
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Hugo Kass
•100% works! It saved me hours of research and showed me I qualified for Currently Not Collectible status which I didn't even know existed 💯
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Khalil Urso
Bruh dont do it! I filed chapter 7 last year and my tax debt from 2020 wasnt even discharged 🤮
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Myles Regis
Have you tried calling the Taxpayer Advocate Service? They can sometimes help stop offsets if youre experiencing financial hardship
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Geoff Richards
•Been trying to get thru for weeks but always on hold forever smh
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Brian Downey
lol ur in the same boat as me. ive lost like 15k in refunds over the last 4 years to these clowns 🤡
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Jacinda Yu
Speaking as someone who went thru bankruptcy - its not worth it just for tax issues. The hit to your credit score takes YEARS to recover from. Look into other options first frfr
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Geoff Richards
•how long did it take ur credit to recover?
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Jacinda Yu
•like 7 years before I could get decent credit card offers again ngl
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QuantumQuest
Before you consider bankruptcy, definitely explore all your other options first. You might qualify for an installment plan where you can pay off the debt over time while still getting your refunds. Also check if you qualify for "Currently Not Collectible" status if you're going through financial hardship - this can temporarily stop collections. The IRS also has a Fresh Start program that might help. Bankruptcy should really be a last resort since it affects so much more than just your tax situation.
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