top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

0% to unsecured per 13 Network

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    0% to unsecured per 13 Network

    I know what the answer probably is, but I'm hoping I'm wrong
    The 13 Network shows I have $10,814 left to pay and 4 months remaining with 0% going to unsecured.
    I pay $4000 a month and at this rate will be paying 6K over the remainder of my priority debt.
    There's no chance we'll get discharged early is there?
    Am I right in thinking the trustee will send the 6K to unsecured debt?

    Because we know the IRS will be billing us for interest for the taxes we've been paying through Chapter 13, can you think of any way that 6K could go to the IRS to pay the interest?
    My lawyer has stopped doing bankruptcy work and is only doing the minimum filing. He's not willing to dive into anything over and beyond the normal stuff.
    Any advice?
    Thank you!

    #2
    If you are an under median filer, it is possible that your plan could end early. But, if you are paying $4,000 a month, I suspect you are not an under median filer and that your plan will last 60 months or until your unsecured creditors are paid 100% of their claims. Yes, if arrears on secured debt and all priority debt gets paid in full, your general unsecured creditors will share what's left.

    I don't know the answer to the IRS interest question. But I found the following in an IRS manual:
    Section 1322(a) requires a plan to provide for:
    1. Submission of all or such portion of future earnings or income to the trustee as is necessary to fund the plan;
    2. The full payment in deferred cash payments of priority claims (including priority taxes under 11 USC § 507), unless the holder of the claim agrees to different treatment;
      Note:

      BAPCPA added a new provision to 11 USC § 1322(a)(4). If the plan provides for less than full payment of a domestic support claim entitled to priority status, all of the debtor’s disposable income for a five-year period must be applied to plan payments.
    3. The same treatment for each claim within a class; and
    4. The payment of interest on claims for non-dischargeable unsecured debts, assuming that the debtor has disposable income remaining after paying all allowed claims in full.


    So, assuming your tax debt is not dischargeable, it doesn't sound like the interest is going to get paid unless you first pay 100% of your unsecured debt.

    My advice is to keep making your plan payments until you are told your plan is complete. Don't worry too much about what 13 Network says, except to confirm your plan payment was received. It is often not accurate.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment


      #3
      Yeah. That's what I thought.
      The thing that irks me is that the IRS is allowed to come after us for interest on the taxes paid during the Chapter 13. So even though we paid the tax debt though the trustee, when our case is discharged, they will hit us with interest for the last five years since technically, we were late paying taxes.
      I really dislike the IRS.
      Oh well. I'll just be happy to be out of the 13... Last payment will be May!!!

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X