Will Bankruptcy Stop the IRS From Collecting Tax Debts? Find out what happens to IRS collection of tax debts when you file for Chapter 7 or Chapter 13 bankruptcy. A bankruptcy case can wipe out (discharge) older income tax debt that meets qualification guidelines.We offer free consultations with an experienced bankruptcy attorney to determine whether or not bankruptcy is right for you. Bankruptcy can help to eliminate or reduce taxes, stop garnishments, stop foreclosures, stop repossessions, reduce car payments and wipe out credit card debt. We handle bankruptcies for consumer debtors and not creditors, and we do our best to keep our fees as low as possible. To learn more visit www.coxlawgroup.com or call(434) 845-2600 for your free appointment. Serving Lynchburg, Bedford, Danville, Charlottesville, Farmville, Harrisonburg, Staunton VA.