Lower tax debt during chapter 13 plan

[DoctorWho]

Is it possible to make the IRS, state taxes, and/or property tax lower in a chapter 13 bankruptcy?

Let's say for example you owe 50,000 to the IRS - 20,000 to the state and 20,000 property taxes. Are you able to make these debts for a lower dollar amount? Say 10 cents on the dollar?

I know that the propety taxes are a secured debt, so I am most unsure about lowering those. The IRS has a lien on real property, so I believe that makes them secured as well.

Either way, I would like to know which I can lower if any and by how much usually.

Thanks!

[HHM]

Nope

1. If the taxes are dischargeable, they don't have to be paid (but there is one caveat)
2. Caveat, if the taxing authority has a perfected tax lien, the debt is now a secured debt. Now, if the underlying tax would be dischargeable, then you can cram the value of the tax lien and only pay the true secured amount.
3. If the taxes are non-dischargeable, sorry, you are hosed, they are priority debt and must be paid 100% (also, interest continues to accrue on priority tax debt, so you will still have a tax bill at the tend of your plan).

[DoctorWho]

If you file an OIC or IA with the IRS before filing bankruptcy..can you leave them off the plan?

Thanks for reaffirming what I thought previously. =0)

[HHM]

Nope

Unless you fully pay the OIC before filing (before you go down this path, realize, it generally takes over 12 months to get an OIC decision, and that assumes you make it past phase 1). With an IA, it is simply a payment plan, the chapter 13 will just replace it.

[DoctorWho]

If you can't do that..is there a way to not have to worry about paying them in full over the plan? A Chapter 7 is not an option.

Once again, thank you!

[HHM]

Nope. If its priority debt, it MUST be paid in the plan. The only exception is to have the IRS agree to be treated as a non-priority to debt, and they never do. Why would they?

[jetsfan2010]

I have IRS taxes in my plan and if it wasnt for them I probably would have filed a 7.