income tax ?

[karm43]

If i am making payments to irs am i still able to get a chap 7? Does it automatically put me in a chap 13?

[IamOld]

NO it does NOT put you in a 13 (unless that's what you want/need)- in fact the pre-petition payment per month to the IRS depresses your DMI - so if you're paying, say $400/mo, that is considered to be an expense that takes away from disposable monthly income.

As I understand it (similar situation here) from atty AND the IRS Online manual - once you file, the IRS cannot send you any more bills. If the tax debt (in general) is more than 3 years old (timely filed, etc.) it can be discharged - ask your atty!!!!

If not, then and IF you can afford to do so, keep sending the IRS your usual payment each month, with say an old copy of your last bill.

They MAY keep it as a "voluntary" payment OR they may send it back to you - either way, once you're out of the BK, you therefore won't have a problem with continuing the IRS installment payment.

If you CANNOT afford to send it, you'll still be ok - remember the IRS cannot collect while the automatic stay is in effect. After discharge, call them and say, hey, I'm done with BK, atty said I can now call you to continue payment plan PLEASE. IRS will generally work with you and let's face it - they make more money off of us, because we pay interest.

[karm43]

Oh thank you again!! So i should just continue to pay it. I only pay 100 a month but if i increase it to say 200 a month this will take away from my dmi? The debt is more then 3 years old. What about state tax i owe them did not pay yet it is over 3 years but i mailed my return like a year later. Want a chap 7 hopefully Feb cannot come soon enough!

[IamOld]

I would keep paying what you and IRS agreed upon UNLESS and UNTIL your attorney tells you otherwise!!!

Same rules apply to state taxes.

NOW - what is crucial, that a) the taxes must have been TIMELY FILED on time or with an extension - IF yes

THEN b) more than THREE years (say 3 years plus 1 day) had to have transpired to your filing. In other words, you had to have filed it at least three years and one day from the day you file BK AND it had to be TIMELY filed.

From the above, it sounds like your state taxes, because they weren't timely filed, may not be eligible for discharge.

BUT this is something that the atty would be able to tell you for sure.

Wow - you have to wait till Feb? I know what that feels like...have you retained an atty?? Gotten consults?

Bottom line - pay the IRS/state BUT only what you/IRS/state agreed to UNTIL/UNLESS atty tells you otherwise.

And you are MOST WELCOME INDEED!!!!!

[karm43]

actually did not get a attorney yet want my income lower. Did 2 years ago and he c=said 1600.00 amonth so i didnt do it cause my second job was not a sure thing with hours plus why pay that much. Just took me this long but preparing this time. Have no other choice. Plus i am over medien

[IamOld]

Again, I'm right there with you - yes, IRS payments state tax payments (the monthly installments) are all taken out of DMI...so I think in your instance it may be worthwhile in talking to an atty sooner than later, because he could calculate you, so to speak, and see if you should perhaps up your payments to IRS/state and thus qualify for the 7....