Anyone have remorse after filing?

[southernbelle]

[$$only4ever]

Everyone has remorse after filing. Filing bankruptcy is definitely not a confidence builder....but with time you quit beating yourself up and realize that it was a good business decision.

[BKOnce]

Yes, I've seen all three circumstances:

1st time :: Remorse;

2nd time :: Happy;

3rd time :: Abusive!...

[gunsmoke]

Hell No !

[CityGirl]

I know I'll feel remorse!! I charged up the debt, I was irresponsible and I should pay it back. I actually feel SERIOUSLY guilty that I'm not paying every penny back like I should. If a BK13 could go for 10 years, I'd do it. Now I have to live with the guilt for being irresponsible.

[biotechsolution]

How much business debt do you have?

Southernbelle:

If you business and tax debt is more than 50% of the total debt that you owe you are exempt from the means test for determining if you can file a chapter 7. Your disposable income available is also of very little importantance. You would be considered a 'non-consumer' debtor.

If this is the case you need to fire your current attorney and find a new one because the one you currently have is completely incompetent.

Some people complain about this loophole when dealing with business and tax debtors but it's the way the bankruptcy laws are set up.

[southernbelle]

I feel guilty that most of the debt can't be paid back, but most of the creditors I spoke with wanted a huge chunk of their money or else, so this is my only option. The only thing I can honestly say will benefit me in filing Ch. 13 is the fact that penalties and interest on back taxes will not be tacked on and ALL of my debt will be lumped into one payment as opposed to trying to piece together a payment here and there. When it gets to a point, it becomes too much. The taxes I owe will eat up a substantial portion of the payment plan amount and will help pay the liens on my home. My biggest concern is the amount left to live on after I file. It doesn't seem to give much room for emergencies, etc.

[CityGirl]

yup! I owe taxes too, and that will be a relief to make one payment. My tax refunds each year have been cutting chunks off too. I make sure my company withholds a TON so I get back about $10K in refunds.

[southernbelle]

I didn't think about that one before, but I will single in a couple of months and I have a lot taken out of my check for taxes. I've never been the type to "plan" things with refund checks, so it doesn't bother me if they take it as long as I can get some relief and closure. I might wait another month before filing though, because it seems like new bills keep showing up constantly. I want to make sure I've got them all. I guess I'll have to use the caller ID more to avoid those harassing phone calls another month, but that's how it is.

[biotechsolution]

Back taxes penalties discharge, interest remains.

Southernbelle:

I would make sure about the back taxes. The penalties are
dischargeable in a 13 but if the IRS has filed a lien and made the
debt secured I think you are still obligated to pay interest.

I forgot to mention the only way you can discharge your taxes in
a 7 is if they pass 3 tests:
1. The taxes are at least 3 years old, tax years 2003 and before.
2. The returns have been filed at least 2 years ago.
3. The taxes have been asessed for at least 240 days.

Otherwise they are not dischargeable.

But still if your business/tax debt makes up more than 50% of your total debt you will not be subject to the same means test for determining your amount to payback in your Chapter 13.
You can determine your Chapter 13 payback amount strictly by your schedules I and J. Which means you determine your expenses, your not subjectable to the allowable amounts on the 22C forms.

[biotechsolution]

If you are in a 13 you don't get to keep your refund checks..unless..

Your plan pays back 100%. You want to make sure your withholding is set at the right amount.

In addition the trustee will question your withholdings if it reduces your net pay too much to reduce your payments.

Be careful on withholding too much.

[cso5@]

Not always true

Your plan pays back 100%. You want to make sure your withholding is set at the right amount.

In addition the trustee will question your withholdings if it reduces your net pay too much to reduce your payments.

Be careful on withholding too much.

This is not always true. My plan pays 4.97% to unsecureds, and my refund last year was deposited in my bank account. I think the trustee "releases" it, so it was delayed about a week. Depending on your trustee, that "you don't get your refund unless you are in a 100% payback plan" thing may or may not be true --

And, this is with IRS and state tax debt owed by me! It's in the plan, and both taxing agencies made claims.

Another "truth" that is out there that turns out to be not always true is that plans now are either 36 months or 60 months. Not true, as mine is 58 months, with a substantially less than 100% payback.

[wrktwoliv]

If the refund is under a certain amount I think usually 2K or less you can usually keep it. But if it is a substantial refund 5-10K most likely the trustee is going to keep it.

Because after all it is now part of the bankruptcy estate.

[lrprn]

There's tremendous variation between trustees about how tax refunds are treated in Ch 13 because there's nothing in the current law about how to deal with them.

A very few trustees allow filers to keep whatever they get back (even $5-10K) and don't ask for each year's returns. However, the rest expect to be given copies of your returns every year to see if there is a refund coming and for how much.

In the last group, some trustees have an upper $ limit the filer may keep and everything above that comes back to the trustee - however, how much the filer can keep can vary. Other trustees will take every penny of any refund the entire time you are in your plan.

The bottom line is you must comply with whatever your trustee's preferences are in your district regarding tax refunds throughout your plan. There is no consistent rule across the country, so make no assumptions! Ask your lawyer if you aren't sure what your trustee expects.

[Elf]

I had all kinds of remorse.

Right until I finished. Then I realized tha t I had done what very few do-- I had completed a Chapter 13.

Guess what. It matters. So few do that. Now--- I have a life. Yeah!!!

Elf