If trustee has confirmed a debtor's chapter 13 bankruptcy that includes IRS and State taxes being paid through the plan, and after confirmation of the plan the debtor incurs new tax debt (let's say approximately $3,000) the following year and debtor files his taxes for the new year but cannot pay the $3,000.00 tax debt by the filing date; what options does the debtor have? If he pays the new debt within a short period of time, will that reduce the chances of dismissal of the bankruptcy? Can dismissal be avoided?
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I don't know so I'm just gonna toss this out,............
Can the attny ammend the plan to include the new tax debt into your plan payments??
Maybe others will know and comment.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
Here is what I know to be the case---our attorney stressed to us to adjust our withholding so that we didnt owe, or at least didnt owe more than we could easily pay, because she said the IRS will move to dismiss, especially when you already owe them, and they move quickly, and it would most likely be granted. So, I took that to mean that its a huge no-no to end up owing.
Sorry to bum you out, but I think that it will be pretty difficult to avoid dismissal if you dont pay it. Think of it this way, you are basically accruing more debt, which of course in chapter 13 you are not allowed to do.
Hopefully you can find a way to pay it, or maybe file an extension? That way
you have till August 15 to try to come up with it, and delay the process of them finding out you owe it?? Just a thought.Comment
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