IRS Installment Plan and About to File for BK

[98daffodils]

Hi Everyone,

Long story short I was in a CH 13 back in 2021 (5 year plan at 20%) because I made too much money to file a CH 7. My CH 13 was not calculated correctly (my lawyer failed to properly include the education expenses (in addition to support) that I have to pay my ex husband for our kids - it is a percentage, not a fixed amount) and I could not to pay my ex $1300-$1400 a month while in a $1600 a month CH 13 plan. So in 2022, my lawyer had me voluntarily dismiss my case (which now I am fuming about because I have read a lot on this and now realize that my ex could have just filed a claim when I couldn't pay vs. my dismissing).

Well fast forward to now and I am being sued by one of the medical debts for $1000. Initial hearing is not until June 20. I have a new lawyer who thinks I can get a CH 7 now but only if I wait until June/July to file (I had a second job that I no longer have and she is waiting for it drop off even further from the six month lookback). Of course I am up against the hearing date too and need to file before that - but here is my question:

I have a payment plan with the IRS for $605 a month (I owe them $11K). It is due today. I could really use that $605 to put towards the BK fees to file. My lawyer said it is ok to be a couple months late on the IRS plan but it worries me. I am currently current - but not paying today would put me a month late and if I can't file for BK until late June, then that makes me two months late. Has anyone dealt with this before?

Thank you!

[justbroke]

I have dealt with "who do I pay" before filing in the past. I always opt to not pay anyone. When you file bankruptcy, your IRS payment plan will be cancelled. You would need to seek a new OPA (online payment agreement) after the case is closed (or dismissed, whichever comes first). So paying the IRS right up to filing may be unnecessary.

I would trust my attorney since filing would stop IRS collection until the case is closed. I can't speak to the timing aspect, but it's already mid-May and June is... in ten days. I had an IRA OPA when I filed my Chapter 7 and it was summarily cancelled. After discharge I started a new OPA to continue paying. That didn't bother the IRS one iota.