There are many people who are facing difficulties in paying their bills and do not pay their taxes on time. It may be because they have suffered business losses or have been ignoring paying taxes for some other reason. Failure to pay taxes is considered a serious offense, which has serious consequences. Defaulters could face a tax lien, in which the government seizes their real estate, retirement accounts, brokerage and savings account. If the tax lien is filed, the person’s credit rating will be affected and they will not be able to buy or rent a house, rent an apartment or sign a lease. For such people, debt relief services from specialized companies is the only ray of hope.

Many companies or individuals declare bankruptcy and it is the only option that seems feasible to them. Nowadays, due to the bad economic scenario, bankruptcy has become a common phenomenon. In accordance with federal bankruptcy laws, it is designed to help people who are deep in debt. Liquidation and reorganization are the two different types of bankruptcy. Chapter 7 denotes liquidation bankruptcy while Chapters 9, 11, 12 and 13 are for reorganization. The process is a bit complex and to fully understand it, people should seek professional help from bankruptcy attorneys.

The tax collection process is activated by the Internal Revenue Service or the IRS, sending three consecutive letters, if the first and second letters are not answered. Later, the IRS authorities contact the defaulter by phone or send their representatives to have a one-on-one conversation with the defaulter. The officer who contacts the defaulter is basically the revenue officer; he contacts the relatives, friends, business associates, employers, colleagues and co-workers of the person in question and discovers the forms of tax collection.

There are many companies that help defaulters find the best ways to pay taxes. These companies have specialized professionals who already have the experience of working with the IRS. Before offering their suggestions, debt relief officers understand the actual financial situation of the defaulter. By using the guidance and knowledge of these professionals, defaulters can save their properties. Bankruptcy attorneys negotiate with IRS agents as a result of which defaulters sometimes get more time to pay or can save their property. Sometimes, if the tax lien is already imposed, professional representation can help defaulters to release it.