Another tax thread

[secondtimer]

I'm still trying to adjust my budget for my 13 filing. I've got state and federal tax debt from 2009 and I can't remember if the penalties and interest accrued before the filing are treated as unsecured debt. I know P&I are halted after filing. My P&I are about 40% of the bill and depending on how it is treated will determine what I do with transportation expense. I need a car and my tax debt will determine what payment I can afford.

Thanks in advance.

[krielly]

Your base tax due will be considered priority debt, and must be paid at 100%.

Penalties & interest are considered "unsecured debt" and will be paid at the same percentage as all other unsecured creditors.