Lancaster IRS Tax Debt Lawyer
The IRS does not need a court order to take your paycheck or empty your bank account, which is the single biggest difference between tax debt and the credit card or medical debt most people are used to dealing with. A Lancaster IRS tax debt lawyer works against a creditor that can file liens and issue levies on its own authority, and that follows its own rules rather than the ones that govern ordinary collectors. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles IRS tax debt, Chapter 7, Chapter 13, and debt settlement for individuals and families in Lancaster and across the Antelope Valley, Los Angeles County, and Southern California.
That means the questions that matter on a tax debt case are different ones. How old is the tax year, and has the clock run out on collection? Was a return filed at all? Is the balance the kind that can be wiped out in bankruptcy, or the kind that has to be paid over time? Does the IRS have a lien on your home, or only a threat of one? The answers decide whether the right move is a payment arrangement, a negotiated resolution, a Chapter 13 plan, or a Chapter 7 filing that eliminates the debt outright.
Why Choose Wadhwani & Shanfeld for IRS Tax Debt in Lancaster
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a distinction held by a small fraction of attorneys nationwide, and the team carries more than 90 years of combined legal experience. The firm serves clients in Lancaster, the rest of the Antelope Valley, and communities throughout Los Angeles, Orange, Riverside, and San Bernardino Counties, and it handles IRS tax debt alongside Chapter 7, Chapter 13, foreclosure defense, wage garnishment, and creditor lawsuits.
Raj Wadhwani, a founding shareholder and partner, is a Southwestern Law School graduate who helped pilot the Best Case Bankruptcy software in 1998 and was the first attorney to file a bankruptcy case electronically in the Central District of California. Greg Shanfeld, also a founding shareholder and partner, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. Both are Board-Certified Specialists in Consumer Bankruptcy.
That depth matters on tax debt because the best answer is often a bankruptcy answer. Because the firm handles both bankruptcy and the alternatives to it, the recommendation you get is based on what fits your tax situation, not on the only service a firm happens to sell. You speak directly with an attorney from your first call, consultations are free, and the entire case can be handled by phone, email, video, or online chat. When a levy or a sale date is days away, the firm acts quickly.
Tax Debt Situations We Handle for Lancaster Residents
- Unfiled or Late Tax Returns: Many people owe more than they should because they stopped filing. The IRS can prepare a substitute return that ignores deductions and dependents, and the resulting bill is often inflated. Getting back into compliance is usually the first step before any resolution is possible.
- Older Income Tax Debt in Bankruptcy: Some older income taxes can be discharged in Chapter 7 if they meet specific timing rules tied to the return due date, the filing date, and the assessment date. Whether a particular year qualifies is a fact-specific question that we work through year by year.
- Priority Tax Debt in Chapter 13: Recent income taxes generally cannot be eliminated, but a Chapter 13 plan can repay them over three to five years without the penalties and collection pressure that come with dealing with the IRS alone.
- Wage Levies and Bank Levies: The IRS can levy paychecks and accounts directly. Filing bankruptcy triggers the automatic stay, which halts collection activity the moment the case is filed.
- Federal Tax Liens: A lien attaches to your property and complicates refinancing or selling. We evaluate whether a lien can be addressed through bankruptcy, payment arrangements, or negotiation.
- Installment Agreements and Payment Arrangements: When bankruptcy is not the right tool, we represent clients in setting up payment terms with the IRS so that levies stop and the balance becomes manageable.
- Self-Employed and Small Business Tax Debt: Antelope Valley contractors, owner-operators, and small business owners often carry estimated-tax balances and business debt together. Our small business bankruptcy and business debt work covers both.
- Tax Debt Mixed With Other Debt: Many clients owe the IRS on top of credit cards, medical bills, and personal loans. One filing can often resolve the unsecured debt while a plan handles the tax balance.
What to Do When the IRS Is Collecting in Lancaster
Start by gathering every IRS notice you have received, in order. The notice number printed on each letter tells an attorney where your account stands in the collection process, and the response deadline on a notice is real. Missing a deadline to request a hearing can cost you rights you would otherwise have had. Do not ignore a letter because you assume you cannot pay; silence is what moves an account from notices to levies.
Next, pull your tax transcripts and your filing history. The question of whether an old tax debt can be eliminated turns on dates: when the return was due, when it was actually filed, and when the tax was assessed. An attorney needs those dates to tell you whether a bankruptcy discharge is possible or whether a Chapter 13 plan is the better route. If returns are missing, filing them accurately comes before nearly everything else.
If a levy has already hit, speed matters. Filing a Chapter 7 or Chapter 13 case stops most collection activity the moment the petition is filed, and we can often prepare and file quickly when a garnishment, levy, or sale is days away. Lancaster residents file bankruptcy in the U.S. Bankruptcy Court for the Central District of California, and which division handles your case depends on the zip code of your street address. Lancaster appears on the court’s San Fernando Valley Division list with a footnote, so the division should be confirmed through the court’s locator before filing. We handle that determination for you, and our attorneys file in every division of the court.
Be careful about the common mistakes. Do not pay a tax resolution company a large upfront fee before someone has told you whether bankruptcy would solve the problem for less. Do not move money into other accounts or transfer property to relatives to avoid a levy, because that can create bigger problems later. And do not skip the free consultation just because you assume the debt is too big or too old; the timing rules often surprise people in both directions.
How Bankruptcy and the IRS Interact
Tax debt sits in a different category from most consumer debt, and bankruptcy treats it that way. Chapter 7 wipes out qualifying unsecured debt such as credit cards, medical bills, and personal loans, and it can reach some older income tax debt when the timing rules are met. Recent income taxes, along with other priority debts, generally survive a Chapter 7 case. Chapter 13 handles those debts differently: they are paid through the plan, and creditors are bound by it once the court confirms it.
Eligibility for Chapter 7 depends on the means test, which compares your household income to the California median for a household of your size and then accounts for your actual expenses. If your income is too high for Chapter 7, or if your tax debt is the kind that cannot be discharged, Chapter 13 is often the better fit.
Property protection is the other half of the analysis. California does not use the federal exemptions. Filers choose between two state systems, one with a large homestead exemption that favors homeowners and another with a flexible wildcard that often works better for renters. You must pick one system for the whole case, and you generally must have lived in California for at least 730 days to use them. Choosing correctly is one of the most important decisions in a tax debt case, especially when the IRS has a lien on property you want to keep.
One distinction is worth knowing. Bank account protections that apply against ordinary judgment creditors do not carry over to debts owed to the state, so you should not assume the same protections apply to every kind of levy. The automatic stay from a bankruptcy filing is the more reliable shield when a government creditor is collecting.
Lancaster IRS Tax Debt Questions Answered
Can bankruptcy get rid of IRS tax debt?
Sometimes. Some older income tax debt can be discharged in Chapter 7 if it meets specific timing rules. Recent income taxes generally cannot be eliminated, but a Chapter 13 plan can repay them over three to five years while stopping collection activity.
How quickly can a bankruptcy stop an IRS levy or wage garnishment?
The automatic stay takes effect the moment the petition is filed, and creditors must stop collection activity. When a levy is imminent, we can often prepare and file a case very quickly.
Do I have to file my back tax returns before I can resolve the debt?
In most cases, yes. Unfiled returns usually need to be filed before a payment arrangement or a bankruptcy strategy can be finalized, and unfiled years can also affect whether a debt is dischargeable. An attorney can help you sequence the filings correctly.
Will I lose my home if I owe the IRS?
Not necessarily. Most of our clients keep their homes. Whether you can keep yours depends on your equity, which California exemption system you choose, and whether a lien has been filed. Chapter 13 lets you keep property and catch up over time.
What is the difference between Chapter 7 and Chapter 13 for tax debt?
Chapter 7 can eliminate qualifying unsecured debt and some older income taxes, and most cases finish in roughly four months. Chapter 13 reorganizes your debts into one monthly payment over three to five years and is built for people with steady income who owe taxes that cannot be discharged.
Can I handle an IRS tax debt case without coming to an office?
Yes. We handle cases fully by phone, email, video, and online chat, and we offer 100% virtual consultations, which is useful for Antelope Valley clients who would rather not make the drive.
If the IRS has a lien on my property, does bankruptcy remove it?
It depends on the lien, the property, and the type of tax. A lien can survive a bankruptcy discharge even when the personal liability is wiped out, which is why we evaluate liens before recommending a chapter.
I am self-employed and owe both business and personal taxes. Can you help?
Yes. We handle small business bankruptcy and business debt solutions along with personal tax debt, and we look at how the two interact before recommending a path.
Will filing bankruptcy get me fired if my employer is garnishing my wages?
Your employer is not automatically notified of a filing, though they may learn of it if wages are being garnished and the garnishment must stop. California and federal law prohibit an employer from firing you solely because you filed for bankruptcy.
Is a tax resolution company or a notary a substitute for an attorney?
No. A bankruptcy petition preparer can type information into forms but cannot give legal advice, choose exemptions, or represent you if the IRS or a trustee raises a problem. Mistakes in a filing can cost you property or your discharge.
How long does bankruptcy stay on my credit report?
A Chapter 7 can remain on your credit report for up to 10 years from the filing date, and the credit bureaus typically remove a Chapter 13 after 7 years. The impact on your score fades well before those dates.
Serving Lancaster and Antelope Valley IRS Tax Debt Clients
Wadhwani & Shanfeld represents tax debt clients in Lancaster and throughout the Antelope Valley, including Palmdale and Acton, and extends across Los Angeles County. From Lancaster, our reach continues into Santa Clarita, the San Fernando Valley communities of Sylmar, San Fernando, Mission Hills, North Hills, Granada Hills, Northridge, Reseda, Encino, Woodland Hills, Van Nuys, Sherman Oaks, and North Hollywood, and on to Hollywood, Santa Monica, and the Westside.
We also serve clients in the Los Angeles area and in South Los Angeles County, including Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, and Huntington Park. In the Inland Empire and eastern San Gabriel Valley, we work with clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and Riverside, as well as the Coachella Valley. In Orange County, we represent clients in Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Talk With a Lancaster IRS Tax Attorney Today
If the IRS has sent notices, filed a lien, or started levying, call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney right away. Our Lancaster IRS tax attorney team will review your returns, your balance, and your property, explain every option inside and outside of bankruptcy, and tell you honestly which path gives you the best fresh start. You can handle your entire case remotely, by phone, email, video, or online chat, or arrange an in-person meeting if you prefer. Call today, before the next levy lands.
