Hi - I've searched for an answer to this one, but its a little unusual.
I filed ch 7 in 2004 while negotiating with creditors when one of them lost patience. The debt was pretty high, but I had assets to cover most of it. The main issue was that CAs FTB disputed a previous tax return for about $100K and the creditor wouldn't wait for resolution.
My attorneys have been arguing with the FTB and I still maintain that the FTB's position is inaccurate. Regardless, the BK trustee has decided to settle with the FTB rather than continue to fight. The problem is that it appears the law makes me still liable for penalties incurred after filing on any amount settled.
So, if the trustee settles (over which I have no control), I get a huge penalty to pay, over $30K. If I'd known this penalty was coming I would have encouraged the trustee to settle years ago, saving me a few years of interest and penalites.
Any ideas how to approach this? It doesn't seem too fair that I get the bill with no influence on the settlement.
Thanks
I filed ch 7 in 2004 while negotiating with creditors when one of them lost patience. The debt was pretty high, but I had assets to cover most of it. The main issue was that CAs FTB disputed a previous tax return for about $100K and the creditor wouldn't wait for resolution.
My attorneys have been arguing with the FTB and I still maintain that the FTB's position is inaccurate. Regardless, the BK trustee has decided to settle with the FTB rather than continue to fight. The problem is that it appears the law makes me still liable for penalties incurred after filing on any amount settled.
So, if the trustee settles (over which I have no control), I get a huge penalty to pay, over $30K. If I'd known this penalty was coming I would have encouraged the trustee to settle years ago, saving me a few years of interest and penalites.
Any ideas how to approach this? It doesn't seem too fair that I get the bill with no influence on the settlement.
Thanks