Specific IRS Question and Chapter 13

[espo1357]

So, I filed recently, and the backpayments of my FIRST Mortgage were where over 90 percent of the payback for the 13 was set to go, for the next five years.

Fast forward a few months, and then I get a loan modification, and the arrears (about 30K) is now included in the first mortage. So, there is no arrears on the first mortgage now.

Currently, I owe the IRS about 5k in taxes from 2010, and since I am in the BK 13, the trustee just added it to my ledger.

MY QUESTION: Since the arrears that I thought I was going to pay off in the 13, is now gone (part of the loan modification, second is going to be stripped btw), then where do my BK payments go to? Is the IRS going to be "first in line" to get my payments OR do those payments mostly go to the first mortgage and will be part of the payment of the principal of the loan when I get dischaged off the 13? Is the IRS considered secured?

I would guess that the IRS would be the place that they would go to, since that is more or less a secured creditor. I had no other secured creditor other than my first mortgage.

Thanks again.

[HHM]

Your attorney is going to hate you

Your plan must be modified, and significantly so. You will pretty much need to rework the plan from scratch.

But to answer your question, yes, your payments would go to the IRS>

[espo1357]

Thanks for the response.

Nothing has changed yet, but I have only made 4 payments out of 60, so who knows when it will adjust.

The lawyer has everything there, and he is a top lawyer in my area, so I am sure he is used to this crap and handles it effectively.

Loan Modification went through right away AFTER the BK was filed, so my guess is that the BK helped me get the modification. Previously, I was not able to get modification for over one year.

The BK was the best business move I ever made by a longshot. I kept my house, have a super interest rate for the length of the loan, have no credit card debt, IRS is handled through the BK payments.

For those that think prayer is useless...

you need to start praying because without God, I would be lost and would have lost everything I had worked so hard for.