Made last payment, but wait....pls help

[plantlover]

48 month Chapter 13, old law, filed 10/05
Made all required payments
IRS put in late claim and didn't show up on Trustee's report until 1/09!
Now I'm risking dismissal if I don't pay the $6850
Attorney wants extra $ if we want to a motion to extend payments
IRS doesn't go away, if we allowed the plan to be dismissed.

Anyone have this experience or have any thoughts about what would be best.
After all this time, I would hate to have a dismissal on our record or file 7.

Thanks!

[forgotten]

Did you not know you had a priority IRS debt due when you filed?

[lrprn]

IRS put in late claim...

Did you include the IRS and the late taxes on your creditor list when you filed? When exactly did the IRS make their claim? Did your trustee pay anything towards the IRS claim over the last four years? Was your lawyer aware of this situation?

...and didn't show up on Trustee's report until 1/09!

Just because it didn't show up where you could see it doesn't mean the trustee didn't know about it. Same question - did your trustee pay anything towards the tax bill during the last four years? What's been happening to the IRS's claim since January 2009 (that's over a year ago)?

Now I'm risking dismissal if I don't pay the $6850

Is the $6850 the claim the IRS filed to be paid during your Ch 13 plan? Or is this what is left after your trustee paid them what they received up until your 48 months ended?

Attorney wants extra $ if we want to a motion to extend payments
IRS doesn't go away, if we allowed the plan to be dismissed.

Given what you've told us, seems to me that you don't really have a choice here. It's either extend your plan to pay off the taxes in full or throw away four years of on-time payments and have all your other creditors come roaring back with whatever you didn't pay them plus penalties and late fees. A no-brainer IMHO. How much extra does your lawyer want to file the amended plan?

After all this time, I would hate to have a dismissal on our record or file 7.

You're right. You don't want your Ch 13 to dismissed here at the finish line. Also if you convert over to a 7, that doesn't help resolve the tax issue. You'll still have to pay what you owe the IRS in full no matter what happens with your bankruptcy.

Why not use the protection of the bk court's automatic stay to pay off the IRS and ensure all the non-secureds and everyone else who received what they should during the length of your plan?