For those without an income or insufficient money to repay their debts, a Chapter 7 bankruptcy is an option. Chapter 7 bankruptcies are often called “liquidation” bankruptcies because that is the primary mechanism of paying back the debts.

A Chapter 13 Bankruptcy is sometimes called the “wage-earner’s plan” because it is an option available only to those who are actively earning an income. If you are earning enough, you can set up a repayment plan to pay off a portion of the debts and discharge the remainder.

Garnishments are, chunks of your income legally taken by others. There are many different situations where garnishments can arise. The most common are child support payments, court judgments against you by a creditor like a bank or lender, and back taxes owed to Idaho or to the IRS.

Tax relief, or tax debt relief, is when the IRS allows you to settle your tax debt for less than the entire amount you owe. You can obtain relief from federal income taxes during bankruptcy, for example. You can also obtain tax relief by applying for an “offer in compromise” with the IRS.