Chapter 7 and Federal Taxes

[techguy74]

Well, I never thought that I would be here, but here I am. I am on very close to filing for bankruptcy and have a tax lien attached to the house. To make a long story short, my ex and I split and I am paying 3100 a month in child support. Since I owed back taxes, the IRS put a lien on the house. The house has been foreclosed upon and I am getting ready to move out. All taxes were filed more than 3 years ago.. The house value has dropped 70k since I purchased it in 2006.

My question, if I pass the means test, would I be able to discharge the tax debt attached to the house. Should I notify the bank of this tax lien or do they already know about it.

I really need to do the right thing here for my girls, since I am throwing all my income towards trying to catch up with bills. If I am to move out soon, I need to stop paying bills immediately so that I may find an apartment.

[dawntyoung]

I am to receive a refund for college. I was wondering since the taxes will not be discharged should I pay them with my refund? Also, I have a speeding ticket- should I pay that as well?

[biotechsolution]

you include them has unsecured, non-priority if they are able to be discharged. The longer you wait to file chapter 7 the more time you give the IRS to file the lien. THe lien will pass through the chapter 7 even
though the taxes can be discharged. It can be collected against anything you have, including retirement accounts.

[chazdiezal]

Hi folks, I owe back taxes from 2000 and 2001 and in the process of preparing for chapter 7. The IRS has not filed a tax lien yet as I was paying on an installment agreement but stopped a few months ago. Do I include these taxes on the schedule E as an unsecured priority claim?
Thanks

[toofastkx]

im actually going to file for ch7 soon. I owe taxes from an audit for 2006 and 2007. the IRS levied a lien on my foreclosed property. the property went to auction 2 months back. I received the IRS lien on the property last week. How do I tackle this before filing? thanks for the help.

[dawntyoung]

@ HHM thanks for the info!!!

[HHM]

Hi Everyone,
I have read everyone's comments and thank you all for the advice. I am going to be filing tomorrow for Chapter 7 BK.

I have back taxes that I owe: $325.09 from 2007. Do you think that I will have to repay that once I receive a discharge? I am unemployed and can just barely pay rent and my cell phone bill monthly.

Any advice you can give me would be much appreciated!

Thx!

Well, if your question is, will those taxes be discharged in BK, the answer is no. It hasn't been 3 years since the tax return was due (for tax year 2007, the tax return due date is April 16, 2008).

[dawntyoung]

Will they be discharged

Hi Everyone,
I have read everyone's comments and thank you all for the advice. I am going to be filing tomorrow for Chapter 7 BK.

I have back taxes that I owe: $325.09 from 2007. Do you think that I will have to repay that once I receive a discharge? I am unemployed and can just barely pay rent and my cell phone bill monthly.

Any advice you can give me would be much appreciated!

Thx!

[scla]

Most attorneys that will look into if your taxes can be discharged will have you request an MFTRA-X from the IRS for each year that the taxes are owed. This will help the attorney determine whether the taxes meet the necessary requirements to be discharged in bankruptcy. The tax lien on your property from taxes owed can be dealt with in different ways depending on the Chapter of bankruptcy being filed. [URL deleted)

[HHM]

Can you include your installment agreement amount in the means test and schedule J only if the taxes are not dischargeable? I'm currently in an IRS installment agreement and all the taxes would be eligible for discharge in BK.

Thanks!

If the taxes are dischargeable, then no.

[BarkingCat]

Actually, your installment agreement should be a non-issue, and yes, you can include it in BOTH the means test and schedule J. In fact, if your current Installment agreement is longer than 60 months (not likely, but if), you can raise the expense amount on the means test and schedule J because that is the amount you would need to pay in a chapter 13.

Can you include your installment agreement amount in the means test and schedule J only if the taxes are not dischargeable? I'm currently in an IRS installment agreement and all the taxes would be eligible for discharge in BK.

Thanks!

[HHM]

Actually, your installment agreement should be a non-issue, and yes, you can include it in BOTH the means test and schedule J. In fact, if your current Installment agreement is longer than 60 months (not likely, but if), you can raise the expense amount on the means test and schedule J because that is the amount you would need to pay in a chapter 13.

[cmcfall]

One of the requirements is that the return was filed. So it would be 2 years from the date you filed the return.

Hello HHM, here is my situation. I owe taxes for 2003-2009 but I just filed them all in 2008 and 2009 so I know they cannot be discharged. I am on an installment agreement paying the IRS 800.00 a month and State $146.00 a month. In an earlier post I listed my schedule J to get some feedback and someone mentioned that my installment agreement may cause me some issues. Do you know how this could affect my filing (chapter 7)?

Thanks, verymuch appreciated.

[ariz207]

I have a question... I owe the IRS for 97,00,01,02,03,06,07...was on an installment agreement before another creditor garnished my wages. The total tax debt now is 17K...it started as 25k. Is some of this dischargeable? If My debts are discharged under chapter 7...will I be charged the taxes for the debt that is discharged?

thx ariz207

[Vibrant]

Just want some confirmation that I'm reading this IRS letter correctly...if it says "Tax Period: 12-31-2006," then that would be return filing deadline 4-15-07, and not eligible for discharge until after 4-15-10, correct?