If you owe the IRS or DOR filing bankruptcy will put you in an interest free payment plan
Posted By Robert Kovacs on Feb 3, 2010 12:00pm PST
If you owe the IRS or the Massachusetts Department of Revenue (“DOR”) back taxes then filing bankruptcy may help.
Filing bankruptcy under chapter 13 or 11 will put you into an interest free repayment plan. Yes, you will have to pay the IRS or DOR back, but it will be INTEREST FREE, penalty free, and you will be able to do it over 5 years in chapter 13 and possibly even longer in chapter 11.
It should also be noted that some taxes will get discharged in bankruptcy meaning you never have to pay them back.