Chapter 20: Anyone ever filed a 7 and a 13?

[fiats3]

I need to file a Chapter 7. That's a no-brainer. But I also want to file a Chapter 13 to discharge back taxes older than 3 years. I heard this combo is called a Chapter 20. What I want to know is since I'm up against a time constraint now (Oct. 17) due to the New BK Laws, when can I file the Chapter 13? I've already filed the Chap 7 emergency petition on 08/04. How lng do I have to wait. Do you know of tricks or ideas to get both in the system before 10/17?

Thanks for any help on this!

[HHM]

First, off, you can discharge back taxes over 3 years old in a Chapter 7 as well, assuming the back taxes otherwise qualify for discharge, (i.e. they have not gone to tax lien, and the returns were filed).

The so called chapter 20 , is used by first filing a chapter 7 to discharge unsecured debts, then after the chapter 7 is "discharged" to file a chapter 13 to deal with those debts that could not be discharged in the chapter 7 for whatever reason.

[fiats3]

Chapter 20 strategy..

Check me out on this. I've started a Chap 7. Going to try and nail $50K in unsecured debt, primarily CCs. Then I want to do a back to back Chap 13 to discharge back taxes >3 years old. My understading is I don't even have to have filed my tax returns. Is this true or false? I heard in a Chap 7 you do have to have returns filed and up to date. What's the real deal?

Also, can I discharge state taxes this way? California is after me for taxes >3 years old and I'd like to discharge the whole lot (~$100K). Also, one last question, how soon can I file the 13 after the 7? With the new laws kicking in around 10/17 I think I don't have enough time to do both (Chap7 & 13) so maybe I'll convert my 7 to a 13 and only do a 13 to get rid of the taxes because the gov agencies can and will garnish me, whereas the unsecured CCs have already written off the debt and are not and will not chase me..what do you think of my complex strategy?

[HHM]

Since your two posts are on the same topic, I have merged them. Please do not needless multiply threads.

[HHM]

There is a way to cram down non-filed taxes over 3 years old. You still have to pay your disposible income into the plan. But the basic requirements for the chapter 13 tax cramdowns are
1. the tax is "income tax"
2. the return was "due" more than 3 years before filing (You need to be careful with this one if you requested extensions).
3. the taxes were assessed by the IRS at least 240 days ago (again, this one can be tough because the tax may never have been assessed if you didn't file the return.)
4. No tax lien exists.
5. The judge will still have to sign off on it, and if you have substantial assets, you may have to pay near the full amount anyway.

State taxes can be more tricky, but the same basic rules apply, but where you run into trouble with state taxes is the date of assessment.

Even in a chapter 13, you will have to pay something for at least 3 to 5 years. Finally, if you fail to complete your plan, all the penalties and interest apply retroactively.

[angel0025]

I filed Chapter 13 and 7

I filed Chapter 13 and then it got dismissed because i got behind on my payments. My house went back into foreclosure so I filed Chapter 7. My BK was discharged in March, 2005. I went to see about financing an auto loan and I was denied. One of the reasons I was denied was it was showing that I have filed BK twice. Is there anyway to fix my credit report. I mean the 1st BK was dismissed... Is there any way to help my credit to show I only have one discharged BK or would that even matter?

[HHM]

I filed Chapter 13 and then it got dismissed because i got behind on my payments. My house went back into foreclosure so I filed Chapter 7. My BK was discharged in March, 2005. I went to see about financing an auto loan and I was denied. One of the reasons I was denied was it was showing that I have filed BK twice. Is there anyway to fix my credit report. I mean the 1st BK was dismissed... Is there any way to help my credit to show I only have one discharged BK or would that even matter?

Why would you post this question in this thread, please post your question in the Credit Reporting Section. However, to answer your question, NO, you filed BK twice, so your credit report will reflect that "you filed BK twice".