Chapter 7 that is discharged, but still open, question about more tax liability.

[vhs]

Hello all,

I am in a BK 7 that has been discharged, but is still open due to a pending lawsuit.

So, during the time I was discharged and still open, I had IRS debt that I could not discharge because at the time of my filing of the Chapter 7, three years had not elapsed for me to discharge the IRS debt.

Well, while my Chapter 7 was open, that IRS debt surpassed the three years.

Question: Since my Chapter 7 is still open, can I discharge those IRS debts that are now past the 3 year mark? Or, since I filed within the three years of that IRS debt, am I now responsible for that debt?

The reason I didn't wait to file and discharge now was because of all the stress I was dealing with and because at the time I was in a Chapter 13. I switched to a chapter 7 due to a health issue and inability to do my job with all the travel involved. I figured it would be better to convert to a Chapter 7 asap, while I qualify.

Thank you for any feedback.

[despritfreya]

Since my Chapter 7 is still open, can I discharge those IRS debts that are now past the 3 year mark? Or, since I filed within the three years of that IRS debt, am I now responsible for that debt?

You still owe the taxes along with all of the interest that has been accruing. You had to meet the test to discharge taxes on the day you filed.

If your case is an asset case and the IRS files a timely claim, some (or all) of the priority tax debt may get paid. What won't be paid is the accrual of interest.

Des.

[vhs]

Thanks Des.

So, I just let my attorney know and pay it, I think.

Any other thoughts on the retaliation payments for an asset chapter 7 case, that has been discharged? The exemptions for my area of residence shows that loss of future earnings is covered for lawsuits in an open chapter 7 case.

[despritfreya]

So, I just let my attorney know and pay it, I think.

Talk to your attorney before paying it. If the IRS filed a claim, once you pay the debt, the IRS will need to withdraw its claim. Your attorney may need to push the IRS representative to do this.

Des.