declaring bankruptcy north carolina
Will filing bankruptcy stop wage garnishments for unpaid taxes?
Anyone who has any knowledge to assist me, you have no idea how much your info will be appreciated. Currently, my wages are being garnished for 3 things.
First, my wages are being garnished for child support. I know that there is nothing I can do about this. I’m ok with this.
2nd, my wages are being garnished for defaulted student loans. I am currently in the process of loan rehabilitation for my student loans, so in January that garnishment should stop.
3rd, I owe back unpaid state taxes for North Carolina. They are now garnishing my wages as well.
My question is, if I declare bankruptcy, will the garnishments for the unpaid taxes be stopped? I know that declaring bankruptcy will stop garnishments for credit card debt and things like that, but am unsure about what it will do as far as my unpaid taxes.
Again, any help anyone can give will be greatly appreciated!
As soon as you file bankruptcy you are under the protection of the court and ALL creditors must stop collection actions from the time you file until you are discharged. If the debts are not discharged they can start up again but not until you are discharged by the court.
Most income taxes that became due and owing over three years ago–this means for the year 2005 and prior–will be discharged in a liquidating bankruptcy. Taxes from later years will survive. If you file a Chapter 13 plan, you can eliminate penalties and some interest.
