Irs disputed 13 repayment plan

[Blessed04]

We filled chapter 13. In May 2020, we were giving a repayment amount of 1297. We both work full time jobs and i do real estate p/t. My goal was to do real estate f/t before the end of year. We planned this after getting repayment plan amount, we felt comfortable that we would still be able to maintain our household and repayment plan. We have been paying the trustee since May. Today our attorney call us and state that the IRS disputed the plan agreement, therefore our repayment plan would increase to $2330 a month.

My questions:

Is it possible for me to do real estate full time and our plan be reevaluated based on my real estate income. Business is picking up for me and I hate my full time job so I don't mind leaving.

Would this put our home or vehicle in jeopardy of being taken? We are current on our mortgage.

We understand the IRS debt would not go away but we could possibly work out a payment plan with the the irs for less than what the chapter 13 plan is offering.

Whats your thoughts? Is this legal or am I prisoner of my F/T job until the plan is repaid.

[despritfreya]

Welcome to the Forum!

If you stay in Chapter 13 the law requires you to provide sufficient funding to pay the priority tax claims in full. It sounds like you under-estimated the amount that was/is owed to the IRS and, as a result, your Plan was not sufficiently funded at $1297/month.

If you cannot afford the higher payment you need to figure out how you will be able to fund the Plan. Maybe a graduated payment, say $1297 for months 1 through 12, then $1900 for 13 though 24 and so on. However, a graduated payment plan will mean that, at some point, the Plan payment will be well in excess of the level payment of the $2330 that your attorney is suggesting.

I cannot say if dropping out of the Chapter 13 and entering into an Installment Agreement with the taxing agencies would be better than the Chapter 13. We do not know the details of your case. This is best discussed with your attorney.

Hope this helps in some way.

Des.