Ch.13 discharged paid in full but now!!!!

[M900]

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I completed my ch.13 6 months ago paid in full 20 months early, thought all was well now today I get a letter from my state demanding back taxes! they did not file in time to get payment when they were notified so they got nothing this debt was included in my ch. 13 and I have been discharged, I've also gotten several refunds since 2002 the year in question, now they are threatening to garnish my wages!! I contacted my lawyer but haven't heard back, seeing as how they have been paid and my case is closed I'm wondering if I will even hear from them!!?? Anyone have any insight or advice I'm feeling weezy......thought these feelings were gone!! sux.....thanks in advance for any help.

[kags1969]

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I completed my ch.13 6 months ago paid in full 20 months early, thought all was well now today I get a letter from my state demanding back taxes! they did not file in time to get payment when they were notified so they got nothing this debt was included in my ch. 13 and I have been discharged, I've also gotten several refunds since 2002 the year in question, now they are threatening to garnish my wages!! I contacted my lawyer but haven't heard back, seeing as how they have been paid and my case is closed I'm wondering if I will even hear from them!!?? Anyone have any insight or advice I'm feeling weezy......thought these feelings were gone!! sux.....thanks in advance for any help.

Just contact them and explain your situation. They will want a copy of your discharge and such, but it shouldnt be a big deal. I would contact them to get it straightened out.

Congrats on finishing!

[lrprn]

I would contact them to get it straightened out.

Kags is right. Talk to your lawyer first to get advice on how to proceed since the taxes were a part of your Ch 13. Then contact the state - don't just hope things will somehow work out. When taxes are involved, that never happens!

Congrats on finishing!

Ditto! So glad that you made it to the Ch 13 finish line successfully - way to go and a big high-five!!

[M900]

I did contact them and they are claiming the debt survived the bankruptcy....they also didn't really want to speak to me cuz the debt is only in my wife's name for some reason?!? weird....as you all know it's just that feeling when all this comes to the surface again, we have started rebuilding our lives small credit purchases,savings and then boom!! rude state tax person calls and won't seem to bend....lawyer still hasn't contacted me..frustrated..again thanks for the positive words I'll keep you posted...

[lrprn]

Cathy Moran, a well-respected bankruptcy lawyer in California, says this about state taxes in bankruptcy:
"State taxes follow the same rules for payment and discharge as for federal taxes. The rules on discharge of taxes are quite detailed, but the overview is that tax obligations for which honest returns were filed either on time, or at least two years before the bankruptcy, for years for which the return was last due more than three years before filing, and for which no tax assessment has been made in the 240 days before filing may be discharged in bankruptcy."(from http://bankruptcy.lawyers.com/ask-a-...ptcy-6547.html - date of this posting is Jan 3, 2007)

This is posted in the Lawyers.com bankruptcy Ask a Lawyer area where there are posters from all over the U.S - it doesn't state it's California-specific. From what you've told us, your state taxes meet all the criteria Cathy mentions. Hope your lawyer confirms that your state works this way too!

[M900]

My lawyer hasn't returned my call yet, I remember at the time of filing they were notified along with all my creditors and they didn't respond so they got nothing...I filed every year after and got a refund. I wonder if they are just trying to scare me into paying I just don't wanna find out the hard way and get garnished. It just seems like I have no recourse if my Lawyer doesn't help especially since they have already been paid. I also don't understand how they think are owed if the case was reviewed and discharged successfully?? They were included in the bankruptcy!! Frustrated..

[lrprn]

My lawyer hasn't returned my call yet,

Call in the morning and ask for the first half hour appointment your lawyer has available. Explain that the state has come knocking asking for taxes that were included in your Ch 13 filing and you need immediate legal advice to handle it correctly. Even if you have to pay for the extra time, it's worth it to ensure your rights in this situation are protected.

If you didn't like working with your first lawyer, you could also make free consultation appointments with several bk lawyers in your area and run the situation by them.

Keep us posted on what you find out, and try hard not to freak out too much until you know exactly where you stand. We're here for hand-holding and venting as needed. Hang in there!

[DeadManCrawling]

Hmm. If you filed alone and the debt is in fact in your wife's name only, this could be like wrestling a monster made of spaghetti.

I hope it is not really in her name alone, since it would not have been included in your solo filing-if you filed alone.

Do let us know how it turns out, as I am sure this could help many people here.

Best wishes,

-dmc

[M900]

The lawyer finally called back and said they had to audit our paperwork more thoroughly, the initial filing included the taxes but he thought that the court may have screwed up and not filed them....in which case I'm screwed cuz the court is not going to be held liable. We filed seperately that year which I had forgotten that's why she is the only one listed on the collection. I can see this coming back to our responsibility through either lawyer negligence which I'm sure they won't admit or court screw up. Just a little upsetting seeing as how we refinanced out of our ch. 13 and that debt would have been paid if the paperwork had been done properly the state couldn't come after us while we were in the bankruptcy, but that doesn't explain why it took them 6 months to make first contact.....arrgg

[M900]

Well I'm screwed...according to my crack team of lawyers "The court failed to file paperwork with the state properly...." the state can now come after me for 5 year old taxes since they would have been paid during the plan had they been notified properly I have to pay the original $1300 plus $700 in penalties, I paid off my ch.13 early got $2200 back from the trustee in over payment paid every other tax and debt I owed but now!! 6 months after discharge I have to pay another $2k...believe me I realize I owed the money but when my lawyer told me 3 plus years ago they missed the deadline to make a claim I moved forward and tried to take care of business it's just a little irritating the lawyers who recieved almost$6K to handle my case have no responsibility in this fortunately I have the money and can pay it but they basically cost me an extra $700 in penalties.... ahh deep breath ask lots of questions and always ask for proof in writing every step of the way and know that even that doesn't guarantee nothing will go wrong. Nothing feels better than completing the plan successfully!!