Not one attorney that I have either met with or spoke with on the phone can answer my IRS/BK question.
I do not qualify for a chapter 13 because I am over the median and after a modified expense analysis I have roughly $250 of disposable income. I just compiled a rough estimate for 2009 taxes and I will owe the IRS a total of $44,000 for 07,08 and 09 taxes. So, I will owe the IRS $733 a month on a 5 year plan. How could this even work in a 13 repayment plan? How can I pay my priority debt (IRS) and the remaining unsecured debt (over $100k) with only $250? Does the IRS get all of the $250 and the cc's get nothing? Then I owe the IRS the remaining balance after the 5 years have expired? If this is the case why not a 7?
What I don't understand is that if I include the IRS payment in the Means test I easily qualify for a chapter 7. I know that the IRS cancels all payment plans once you file BK (I am paying about $700mo. right now). The last attorney that I spoke with said that it was an expense that could be listed because it was an active agreement at the time of filing. Then he told me that because of this I could file a 7. Then he changed his mind and said 13. He says that they would require me to "make room" for a larger trustee payment... perhaps letting go of my only car (no equity). I am just so confused! I have spent hours today trying to find an answer for myself and I can not find anything. Thanks in advance for any help
I do not qualify for a chapter 13 because I am over the median and after a modified expense analysis I have roughly $250 of disposable income. I just compiled a rough estimate for 2009 taxes and I will owe the IRS a total of $44,000 for 07,08 and 09 taxes. So, I will owe the IRS $733 a month on a 5 year plan. How could this even work in a 13 repayment plan? How can I pay my priority debt (IRS) and the remaining unsecured debt (over $100k) with only $250? Does the IRS get all of the $250 and the cc's get nothing? Then I owe the IRS the remaining balance after the 5 years have expired? If this is the case why not a 7?
What I don't understand is that if I include the IRS payment in the Means test I easily qualify for a chapter 7. I know that the IRS cancels all payment plans once you file BK (I am paying about $700mo. right now). The last attorney that I spoke with said that it was an expense that could be listed because it was an active agreement at the time of filing. Then he told me that because of this I could file a 7. Then he changed his mind and said 13. He says that they would require me to "make room" for a larger trustee payment... perhaps letting go of my only car (no equity). I am just so confused! I have spent hours today trying to find an answer for myself and I can not find anything. Thanks in advance for any help
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