I am filing for bankruptcy bc i owe IRS 40K. I have two credit cards and am on time paying my credit cards?

-will filing bankruptcy hurt my credit with credit card companies, will my apr increase?Call the companies and tell them you are in trouble. They will see that you are not including them in the bankruptcy proceedings, and intend to make good on your debt. Ask them not to change anything on your account that could strain your already fragile finances.



They may or may not help. Most likely they will, they have money on the line.Filing for bankruptcy will destroy your credit with everyone, including credit card companies, for 7 to 10 years.



It is nearly certain that your APR will increase. The only realistic way that your APR will stay the same is if your APR is already the highest that the APR is allowed to get. It is also remotely possible that you might die or that terrorists might blow up the credit card company. However, even if the credit card company is destroyed by terrorists, another credit card company would buy the rights to collect the interest and would raise your APR, and you will still be required to pay a higher APR. The only difference would be that it would not be your current credit card company that would be increasing your APR.
How old is the tax debt? If it's less than 3 years old, filing Ch 7 bankruptcy won't discharge them. If you file Ch 13 the penalties will be dropped but you must still pay off the tax that you owe.



Filing bankruptcy will destroy your credit. Your credit card companies will be left holding the bag though you can go back after the bankruptcy and recertify the debt with them. They won't be likely to give you an increase in your credit limit though and they would be likely to raise your APR as much as your contract allows.



If you cannot pay both the IRS and the credit card companies and the taxes cannot be included in bankruptcy it would make more sense to let the bankruptcy clear the credit card debt so that you can free up funds to pay off the IRS. The IRS always comes first (after very basic living expenses and child support) so the credit card companies have little standing.
You do not file bankruptcy "on" a particular debt; you file bankruptcy - period. All debts, owed to everyone, anywhere in the world, MUST be listed and disclosed in you bankruptcy paperwork. The bankruptcy may have different effects on different debts - for example, if you want to keep a car, you have to continue to pay for it, and student loans are usually not dischargeable - but that doesn't mean that those debts aren't "included".



In other words, you don't get to leave out the credit cards.



Some taxes are dischargeable in bankruptcy, some aren't. The laws regarding discharging taxes are complicated and must be analyzed by an attorney.



Nearly all consumer bankruptcy attorneys offer free consultations. Take advantage of this to meet with one and get advice based on all of the details of your particular situation. You can find a referral at NACBA.org (National Association of Consumer Bankruptcy Attorneys).
uh...stop.



Talk to a bankruptcy attty.



odd are that the IRS liens won't be wiped out by a bankruptcy.



And yes, it will kill your credit and your APR's WILL skyrocket in 5 years when you CAN borrow again



uh..no one is increasing a credit line with a pending bankruptcy or an outstanding 40k IRS lien
your interest rates will probably go up and yes, filing bankruptcy is going to destroy your credit. also, you can't include IRS debt in a bankruptcy