Bankruptcy Services

Bankruptcy isn’t about failure—it’s about getting breathing room when everything feels like it’s closing in. If you’re drowning in tax debt, facing foreclosure, wage garnishments, or even lawsuits, you’re not out of options. In fact, choosing bankruptcy for tax debt could be the path forward you didn’t know existed.

Depending on your situation, Chapter 7 can discharge certain debts and give you a clean slate, while Chapter 13 allows you to reorganize what you owe—including some tax debt—into a payment plan that actually works for your life. Often, that means lower payments, reduced or no interest, and protection from ongoing collection efforts.

Bankruptcy can immediately stop:

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IRS collections

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Foreclosure proceedings

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Wage garnishments

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Lawsuits and creditor harassment

We know how overwhelming choosing bankruptcy for tax debt can be—which is why we don’t treat your case like just another file. We take the time to understand your financial picture, then walk you through your options with clarity. Not every bankruptcy case is the same—and your best results come from a personalized, strategic approach.

Bankruptcy Options

Facing foreclosure, garnishments, or bank levies? Bankruptcy could be the solution to giving you breathing room and a chance to rebuild.

Chapter 7

At Thinking Outside the Box Law Inc. we work with people who are ready to break free from crushing debt and finally breathe again.

Chapter 11

Stop collections, protect your assets, and restructure what you owe through the power of Chapter 11 bankruptcy.

Chapter 13

When you’re behind on bills, facing foreclosure, or being hounded by creditors, it’s easy to feel stuck: lose everything or stay buried under debt.

Can You Dispute A Tax Bill? Two Rights DuPage Taxpayers Have This Tax Season

Key TakeawaysYes, you can dispute a tax bill—a notice from the IRS is often a proposal, not a final verdict. The IRS routinely issues bills based on incomplete or incorrect information, especially when returns are missing or rushed. You have the legal right...

2025 Taxes for DuPage Business Owners Who Owe the IRS

Key TakeawaysResolving old tax issues depends on how you handle your 2025 taxes Filing your 2025 return on time matters even if you can’t pay the full balance For self-employed taxpayers, estimated payments are part of staying current on 2025...

Tax Liens and Bankruptcy: Can Federal Taxes Be Discharged in Bankruptcy If a Tax Lien Survives?

Many people are surprised to learn that bankruptcy can sometimes wipe out federal income taxes — but not always. One of the most common points of confusion involves tax liens and dischargeability. Clients often ask: “If the IRS tax lien survives bankruptcy anyway, why...

What Happens After DuPage Taxpayers Appeal IRS Decisions?

Key TakeawaysThe IRS has launched an IRS Post-Appeals Mediation (PAM) pilot program for certain unresolved Appeals cases. PAM allows a facilitated negotiation with a neutral mediator and a new Appeals team. Not every case qualifies, but the program shows...

FAQ: IRS Debt & Bankruptcy in the 7th Circuit

Can federal income taxes be discharged in bankruptcy in the 7th Circuit? Yes, but only if strict timing rules are met. In the 7th Circuit (including Illinois), federal income taxes may be discharged in bankruptcy only if all of the following are true: The tax return...

Student Loans & Bankruptcy FAQs: Can Student Loans be Discharged in Bankruptcy?

Q1. Can student loans be discharged in bankruptcy? While student loans are still harder to discharge than credit cards or medical bills, there is now a new, nationwide process that is working for many borrowers with federal student loans. Q2. What’s the new process...

Illinois Bankruptcy Exemptions: Is Bankruptcy More Accessible For DuPage Taxpayers?

Changes in Illinois law have increased the Illinois bankruptcy exemptions for 2026. Why is this good News? It is good news because the higher bankruptcy exemptions will allow more people can file bankruptcy without the fear of having to sell their home or vehicles. ...

Bankruptcy Misconceptions

There are a lot of common bankruptcy misconceptions out there. Fears caused by these bankruptcy myths discourage consumers from filing for bankruptcy and getting relief from taxes, credit cards, and student loans. Myth #1: Taxes cannot be discharged in...

Streamlined Installment Agreement: A Tax Debt Repayment Option for DuPage Owers

Key Takeaways The Streamlined Installment Agreement (SIA) is an ideal option for paying back taxes to the IRS… IF you owe $50,000 or less. Most people get immediate approval... no financial disclosures required. You have 72 months to pay off your...

IRS Audit Representation: When Your DuPage Tax Pro Shines

Key TakeawaysThe way you communicate with the IRS can shape the entire outcome of your audit. Filing a Power of Attorney form allows your tax professional to legally handle all communication for you. Speaking directly with the IRS can unintentionally...

How You’re Missing Critical Tax Relief

Here’s the hard truth: when you’re behind on taxes or buried in debt, the IRS is not going to help you find ways to reduce what you owe. In fact, they’re counting on your confusion and fear to keep you paying more than you should.

The good news? Even if you’re years behind, we can help you uncover legal, powerful ways to reduce or resolve your tax debt. From reconstructing missing records and filing back tax returns to negotiating settlements and discharging eligible taxes through bankruptcy, we know how to protect your rights—and your wallet.

Don’t leave money on the table or let fear keep you stuck. Take back control with our proven tax resolution strategies.

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