Torrance IRS Tax Debt Lawyer
Getting the IRS to stop levying your bank account, release a lien, or accept a payment you can actually afford is usually the real goal of a tax debt case, and the sooner a plan is in place, the more options you keep. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles IRS tax debt for individuals and families in Torrance and across Los Angeles County, Orange County, Riverside County, and San Bernardino County. The firm can talk through your situation with an attorney from the very first call.
A Torrance IRS tax debt lawyer has to look at more than the balance on a notice. The same tax bill can be handled very differently depending on its age, what kind of tax it is, whether returns were filed, and what else you owe. Some income tax debt can be wiped out in Chapter 7 if it meets specific timing rules. Other tax debt can be paid over time inside a Chapter 13 plan, or resolved with the IRS directly through a payment arrangement. Choosing the wrong route is expensive, so the first job is sorting out which category your debt falls into.
Many of the people who call us about tax debt are also dealing with credit cards, medical bills, or a mortgage at the same time. That matters, because the IRS is usually the creditor with the most leverage, and a plan that ignores the other debts tends to fall apart. Because this firm handles bankruptcy and the alternatives to it, the recommendation is built around your whole financial picture rather than the one tool a firm happens to offer.
Why Choose Wadhwani & Shanfeld for IRS Tax Debt Help
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt, and the firm serves clients throughout Torrance, the South Bay, and the rest of Southern California. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, and the attorneys bring more than 90 years of combined legal experience to cases involving IRS tax debt, Chapter 7, Chapter 13, debt settlement, and wage garnishment. You get direct access to an attorney from your first call, and when a levy, garnishment, or sale date is only days away, the firm moves fast.
Raj Wadhwani, a founding shareholder and partner and a Board-Certified Specialist in Consumer Bankruptcy, 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 and a Board-Certified Specialist in Consumer Bankruptcy, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. That depth matters for tax debt, because the best answer often depends on bankruptcy rules, and the firm files in every division of the U.S. Bankruptcy Court for the Central District of California.
The first consultation is free, and you can handle everything by phone, email, video, or online chat if coming in is hard. The firm will also tell you plainly when bankruptcy is not the right answer and a negotiated arrangement with the IRS makes more sense.
Common IRS Tax Debt Situations We Handle
- Back Taxes on Unpaid Income Tax Returns: Balances that built up over several years because of a job change, a spouse who handled the finances, or a bill that was simply too big to pay. Whether an older income tax debt can be discharged depends on specific timing rules tied to when the return was due and filed.
- Self-Employment and Gig Income Debt: Torrance and the South Bay have plenty of independent contractors, rideshare and delivery drivers, and small business owners who owe self-employment tax without any withholding. Estimated payments get missed, and the bill arrives all at once.
- Bank Levies and Wage Garnishments: When the IRS moves from notices to collection, it can take money from an account or a paycheck. Filing bankruptcy triggers the automatic stay, which halts most collection activity the moment the case is filed.
- Federal Tax Liens: A lien attaches to your property and can complicate selling or refinancing a home. How a lien is treated depends on how much equity you have and which chapter you file.
- Payment Arrangements With the IRS: For clients who do not need or want bankruptcy, our attorneys represent you with the IRS to stop levies and set up an arrangement based on what you can realistically pay.
- Tax Debt Combined With Other Debt: Credit cards, personal loans, medical bills, and tax debt often pile up together. Chapter 13 can bundle priority tax debt into one monthly payment over three to five years, while Chapter 7 can erase the unsecured debt around it.
- Small Business Owners With Tax and Business Debt: Owners who fell behind on taxes while keeping a business afloat often need small business bankruptcy or business debt solutions alongside the tax strategy.
What to Do Right Now If the IRS Is Collecting From You
Start by gathering every notice the IRS has sent you and putting them in date order. The letter itself tells you a lot: what tax year is involved, what the balance is, and whether the IRS is warning you about a lien or a levy. Do not throw away anything that looks like a final notice, and do not ignore a response deadline, because those deadlines affect which options remain open. If you have not filed returns for one or more years, say so up front. Unfiled returns change the strategy, and the attorney needs to know before recommending a path.
Next, pull together a simple picture of your finances: income, monthly expenses, what you own, and what else you owe. This is what lets an attorney work out whether you would pass the Chapter 7 means test, whether Chapter 13 fits better, or whether negotiating directly with the IRS is the smarter move. You do not need perfect paperwork to make the first call. A free consultation is the place to find out what to bring.
If a levy or garnishment is already underway, tell us immediately. Filing a Chapter 7 or Chapter 13 case stops most collection when the petition is filed, and in an emergency the firm can often prepare and file quickly. For Torrance residents, the bankruptcy case would be filed in the U.S. Bankruptcy Court for the Central District of California, and the filing division is decided by the zip code of your street address, so we confirm that before filing. The mistake we see most often is waiting until the money is already gone from an account before calling, or paying a “tax relief” company a large upfront fee for something an attorney can often do more effectively.
Once you have decided to move forward, expect the process to run in a fairly predictable order: a conversation about your numbers, a recommendation on the best route, preparation of the filing or the IRS paperwork, and then the stage where the stay or arrangement takes effect and you start to get breathing room. A Chapter 7 case is usually finished in roughly four months, while a Chapter 13 plan runs three to five years.
Can Tax Debt Be Wiped Out, or Only Paid Over Time?
This is the question behind most calls about IRS debt, and the honest answer is that it depends on the tax. Some older income tax debt can be eliminated in Chapter 7 if it meets specific timing rules. Other tax debt cannot be discharged at all, and in those cases Chapter 13 is often the better tool, because it lets you pay priority tax debt through a structured plan while creditors are bound by the plan once the court confirms it. Many filers use Chapter 13 for exactly this reason, especially when they also want to keep a home or catch up on a mortgage.
Which exemptions you pick matters here too. California does not use the federal exemptions; filers choose between two state systems, one with a large homestead exemption for homeowners and one with a flexible wildcard that often suits renters. The choice you make determines how much of your property is shielded, so it is made carefully, case by case. To use California’s exemptions you generally must have lived in the state for at least 730 days.
Tax debt also interacts with a lien. If the IRS has already recorded a lien against your property, how much equity you have and how it is protected will shape whether Chapter 7 or Chapter 13 works better. This is where having an attorney who handles bankruptcy and tax-related debt together makes a practical difference.
Frequently Asked Questions About IRS Tax Debt in Torrance
Can bankruptcy get rid of IRS tax debt?
Sometimes. Some older income tax debt can be discharged in bankruptcy if it meets specific timing rules, and other tax debt generally cannot. We review the tax years, the return filing dates, and the type of tax before telling you what is realistic.
Will filing bankruptcy stop an IRS levy or garnishment?
Filing a Chapter 7 or Chapter 13 case triggers the automatic stay, which halts most collection activity as soon as the petition is filed. If a levy or garnishment is imminent, call right away so the case can be prepared quickly.
Do I have to pay the IRS in full?
Not necessarily. Depending on your situation, the debt may be discharged, paid through a Chapter 13 plan over three to five years, or handled through a payment arrangement negotiated with the IRS. The right option depends on your income and the kind of tax involved.
What is the difference between Chapter 7 and Chapter 13 for tax debt?
Chapter 7 can eliminate qualifying unsecured debt in roughly four months, and some older income tax debt may qualify. Chapter 13 reorganizes your debts into one monthly payment over three to five years and is often used for priority tax debt that Chapter 7 cannot eliminate.
Do I qualify for Chapter 7 if I owe taxes?
Qualification turns 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. Owing taxes does not by itself disqualify you, but it affects which chapter fits best.
Will I lose my house if I owe the IRS?
Most of our clients keep their homes. In Chapter 7 the question is whether your equity is protected by California’s homestead exemption, and Chapter 13 lets you keep a home and catch up over time if you have more equity than the exemption covers or you are behind on payments.
What if I never filed my tax returns?
Tell the attorney at the first consultation. Unfiled returns change what can be discharged and how the case should be handled, and it is better to address them deliberately than to have them surface in the middle of a filing.
Is it worth hiring a lawyer instead of a tax relief company?
Often yes. A bankruptcy attorney can stop collection through the automatic stay, choose the right exemptions, and represent you if a creditor or trustee raises a problem. A petition preparer or notary cannot give legal advice or represent you, and mistakes in a filing can cost you property or your discharge.
Can the IRS take my bank account if I have little in it?
A levy can reach funds in an account, which is why speed matters once a notice arrives. Filing bankruptcy halts most levies when the case is filed, and we can often act quickly in an emergency to stop one before more money is taken.
Can I handle this without coming to the office?
Yes. We handle cases fully by phone, email, video, and online chat for clients anywhere in Southern California, and 100% virtual consultations are available. You can also meet in person if you prefer.
How long will tax debt affect my credit?
A Chapter 7 bankruptcy 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. Its impact on your score fades well before then, and many clients see scores begin to recover within the first year with responsible credit use.
Serving Torrance Tax Debt Clients Across Southern California
Our work for Torrance residents extends to the whole South Bay and Los Angeles County. We help clients in Torrance, Gardena, Inglewood, Compton, Lakewood, Long Beach, Signal Hill, and Paramount, and we regularly work with people from Bellflower, Norwalk, Cerritos, Cypress, and Huntington Park. Toward the north and east, we serve Los Angeles, Hollywood, Santa Monica, and the Westside, as well as the San Fernando Valley communities of Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar.
Beyond Los Angeles County, the firm represents people throughout Orange County, including Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel. In the Inland Empire and eastern San Gabriel Valley, we help clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Riverside, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, and West Covina, along with the Coachella Valley. We also serve the Antelope Valley, including Lancaster, Palmdale, and Acton, and Santa Clarita.
Talk to a Torrance IRS Tax Debt Attorney Today
You do not have to wait for the next notice or a levy to find out where you stand. Call Wadhwani & Shanfeld for a free consultation and speak directly with a Torrance IRS tax debt attorney about whether bankruptcy, a payment arrangement, or another approach gives you the best way out. We will review your situation, explain every option inside and outside of bankruptcy, and tell you honestly which path fits. Call today, or schedule a virtual consultation at a time that works for you.
