Jun 04, · If you owe past due federal taxes that you cannot pay, bankruptcy may be an option. Other options include an IRS payment plan or an offer in compromise.. If you are a person that has filed bankruptcy, a debtor’s attorney or a U.S. Trustee with questions about an open bankruptcy you may contact the IRS’ Centralized Insolvency Operations Unit, Monday through Friday, a.m. to . When you file for Chapter 7 bankruptcy, you must fill out a series of “means test” forms. The current monthly income calculation plays a role in whether you qualify for Chapter 7 bankruptcy, and whether you must pay into a three- or five-year repayment plan in Chapter 13 bankruptcy. A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.