Filing For a Chapter 7 Now - Convert to 13 After New Year?

[Scoutitout]

I am about to file for Chapter 7 bankruptcy. I have back tax debts that I am on payment plans with the IRS for that meet the 5 criteria for Chapter 7 discharge. However, I have a newly assessed tax debt for 2007 that will not qualify, and I will also owe for 2008 when I file after the new year. I don't want to wait to file my chapter 7 bankruptcy due to the fact I'm likely to get a little raise in the new year. However, I may need to conver to a chapter 13 based on my income - I'm sort of right on the line.

My question is, if I file the Chapter 7 now, and then must convert it after the new year to Chapter 13, can I then add in the pending 2008 tax debt to the plan? I realize in Chapter 13 I will have to pay the 2007 and 2008 tax debt in its entirety - I'm just not sure if starting with the chapter 7 this year excludes the 2008 tax debt from getting in. I don't want to end up with a chapter 13 payment plan that excludes the 2008 tax debt. Thanks for any comments.

[GreenInkOnPaper]

How much "other" debt do you have? I would compare what you would pay in a 13 on all your debt versus how much you would pay just on the taxes.

[Scoutitout]

The older tax debt totals about $6,000. The newer tax debt for 2007 and 2008 is (will be) approximately $21,000. My other debt totals about $30,000 in unsecured debt (credit card/medical) and then about $40,000 in the dreaded student loan area. My income is at $68,000 and I have no assets, 1 car worth about $1,000 with 135000 miles and barely runs, and another car which I owe about $5000 on and pay $365 a month. I'm currently unable to afford an attorney so I'm pretty concerned about what to do.

I know I have to pay off the new tax debt and the student loans. I figured I'd try for the Chapter 7 and then if it was successful, I'd only have the newer tax debt and student loans remaining. I could then maybe make an offer in compromise to the IRS for the newer tax debt. I don't really have any idea how much chapter 13 payments usually are. I just assume they are at least enough to cover the priority debt. Thanks for any further assistance.

[GreenInkOnPaper]

Well. a 13 might be a good option for you because: The payments are based on the disposable income you have available to you. It's possible that none of your unsecured debt would get repaid, just discharged in a 13, considering how much priority debt you are carrying.

[Scoutitout]

Thanks for your comments. I am trying to avoid entering into a chapter 13 because I think I can negotiate a lower payoff amount directly with the IRS for the newer tax debt. But, in case I do not succeed with a chapter 7 dur to my income, I need to know if I can add the 2008 tax debt into the mix if I'm forced to convert the chapter 7 into a 13. I want to file the Chapter 7 now before I get a raise in the new year, but the 2008 taxes aren't technically assessed until 2009 so I want to know if I start now can I basically add in another debt ( the newer taxes) if I have to convert to a chapter 13. It's kind of a confusing question and I'm probably not articulating it well.

[floridian]

did you have a problem with the means test?

[Scoutitout]

I did a means test with an online means test calculator and it said I "passed" but I was unsure of some of the categories and if I answered correctly. The attorney I consulted with earlier this year indicated I was "right on the line" and was unsure if it would go through. This is why I thought I'd at least give the Chapter 7 a shot and if it didn't work out, convert to the Chapter 13. It would be in my best interest to do the Chapter 7 and try to work out the new tax debt separately with the IRS since I'm planning on relocating after the new year and I will be in an area where I make much less money.

[GreenInkOnPaper]

I'm wondering-- did you add in your expected tax debt when you were doing the calculator? Something I would do -