I would like to file chapter 7 bankruptcy. The main reason why I want to do this is because I owe my old school $3000 and itsince gone to a collection agency who has added an additional $3000 in interest. I have tried to negotiate with the agency but with no luck. THIS IS NOT A LOAN. I went to school and promised to pay the school at the end on the semester. At the end of the semester I came into financial problems and was unable to pay. I also owe the irs $20,000. My income is $35,000 a year. With my income I barely have any disposable income left and interest continually grows on the money that is in collection.
You need to speak with a bankruptcy attorney in your area. Many attorneys offer a free initial consultation. Take advantage of this and discuss your particular situation with someone who can help you.
Generally, taxes owed to the IRS cannot be discharged in bankruptcy. There are exceptions but they are limited. This is why you need professional help. You do not list any other debts. If the only debt you have, other than to the IRS, is the $6000 to the school, bankruptcy may not be a particularly advisable option.