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    #16
    Originally posted by justbroke View Post
    Back in the day (maybe before 2012), the plans included a paragraph which read something to the effect of... "the plan pays XX% to the unsecured creditors." They no longer seem to do this because it's really about the plan base amount. If the plan base amount is covered by all the payments over the length of the plan, then it's a so-called 100% plan. You can also tell if you're in a plan which requires you to pay back all of your creditors, by the language in the plan itself. Those "full payment" plans usually don't have many restrictions on incurring debt, or keeping a tax refund.
    Oddly enough...we are forbidden to incur any debt, including a secured credit card, without court approval. Which seems odd, since the trustee has no issues with us owing the IRS. It is what it is & we will just wait until our case closes (hopefully May or June) to begin rebuilding.

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      #17
      Plan language is so important. In the Florida districts they have a "model" plan. If you deviate from the model plan then it can cause a delay in confirmation. If I had gone back into a 100% Chapter 13, I would have opted to check the box and change the language from the model plan to one that supports a 100% plan debt. At least it would have been worth the fight.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      I am not an attorney. Any advice provided is not legal advice.

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        #18
        Well, all is not lost.
        I paid the 70$ to use a tax software program to file.
        I do owe the feds 3k, but I’m hoping for a 1200$ refund from state, thanks to a whacko Oregon kicker law that refunds a biennial tax surplus to the taxpayer.

        Im on the hook for 1800$, if this is true. That is semi-manageable. I seem to remember the IRS allowing 60 days after the 4/15 deadline to make full payment?

        Does that ring a bell with anyone?

        With a bit of luck I may not even need to ruffle any trustee feathers about tax debt, although I don’t trust the tax prep program 100%. I did have an error with it a few years back.

        I am feeling somewhat relieved at present, however.

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          #19
          For the IRS, always pay as MUCH as you can afford before the 15th, since you'll still get penalties. Also, that means filing a Request for Extension (or whatever it's called) which will prevent you getting a "failure to file" penalty. But, you'll still get the interest charges for failure to pay anyhow, but they are much more reasonable than the failure to file penalty.

          If you file the Extension, you'll have until about October 15th to finally file. But, you'll still be paying the failure to pay penalties.
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          I am not an attorney. Any advice provided is not legal advice.

          Comment


            #20
            File by April 15th and pay as much as you can. Then make payments until paid in full. You will get penalties and interest but they are manageable. The failure to pay penalty is .5% of the unpaid tax per month which is much less than the failure to file penalty of 5% of the unpaid tax per month.

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