Chapter 13 being dismissed, what about the IRS taxes in the payback of the 13?

[catleg]

How long have you been in ch13? After your lawyer, the IRS would be next in line to get paid. You should check 13datacenter and see how much has been paid on their claim. Also, ch13 protects you from penalties and interest assessed in addition to tax owed. I don't think the IRS can take your lump sum while you're in ch13. So unless your trustee can intercept it, it will be yours to spend; at worst if he finds out and wants the money, he will have to roll it into your plan I assume.

[freeme0215]

I have been in a 13 since July 2010.

I have the lump sum in a bank right now, with no other funds intermingled.

My income has gone from $3200 to $2020 a month. This is why I am in need of a modification of the 13 without the mortgage. I am also aware of the acute need to get the back taxes paid.

My attorney did say for me to call the IRS and tell them I am in need of a offer in compromise and see if I can lower the taxes I owe..I owe 6000 for 2008 and 2009. Get this done and then file for a 7....

I have not paid the IRS any tax monies, as I stopped paying into the 13 in April and IRS was scheduled to get my first payback money in May.

I was thinking to remain in 13 for tax purposes.....

I have till June 24th to modify the 13 if not July 23rd it is dismissed.

I am worried about the 6 months I have to let pass before I can go to a 7 if I let this get dismissed and the leins and judgements that may get filed....if I do get leins or judgements, can I when filing the 7 in 6 months add the judgements and leins???

Thanks to all as I progress thru this difficult decision for me

[car67]

Well you can always take all cash and dont use any bank for 6 months to deflect the liens and judgements till you can file. I think with the backlog in the courts I doubt anything much will happen in a month window that you will feel the affect from