I have been in a Chapter 13 plan for one year. I now owe about $3500 on my 2004 taxes, (Fed about $1500 and state about $2000) I had some back fed and state taxes that are included in my plan. I called my lawyer as to what I should do about this new debt and he never got back to me.I am assuming it can't be "added" to my chap 13. I read somewhere that the trustee may look at this new debt negatively and may have a reason to try to dismiss my case. We don't have $3500 cash right now. I also read that the Feds will not allow a payment plan for someone in bankruptcy. Any ideas or advice??
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I ran into that situation this year. I contacted the IRS and they said not to worry that they'd file a post petiton claim and get it paid through the plan. NOT TRUE. As soon as they did this the trustee filed a motion to dismiss my case. I had to come up with the money, file objection to his motion, big headache! They do consider it a new debt, why I don't know. Best bet is to see if you can modify your plan, maybe you could suspend payments for a few months to get these taxes paid and have the suspended payments added to the end of your plan. Another idea, maybe you should consider having extra taxes withheld from your paychecks if it seems to be a routine problem where you owe in each year. Sorry that I could't give you any positive advice. -
Thanks
Thank you very much for sharing your situation with me. I will try to talk to my lawyer again and see what he says. I wonder if maybe I should just talk to the trustee directly and tell him my situation.Comment
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NO don't talk to the trustee. You can't let him know that you incurred a new debt. They would probably file a motion to dismiss your case. Just tell them your car broke, you had unexpected medical expenses, your furnace broke, something like that. Post reply on how it goes. If this don't work, maybe you could ask your lawyer if you can add the taxes to be paid in your plan and modify the plan to cover the period of time needed, my attorney mentioned this option but didn't sound very sure that the trustee would accept it.Comment
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