Confused - Chapter 13 - Post filing IRS tax owing - Help!!!!!

[sophieanne]

I'm in Chapter 13...
I thought i had enough being held from my pay but I was wrong. Turns out I owe about $2000 for 2013. Filed July 2012. I thought the automatic stay applied to all debt during the bankruptcy period. Is that not the case? Can the IRS send me collection notices and threaten to have my case dismiss if I don't pay this righ away????
Help please..a little nervous...

[andy158]

Any debt incurred post filing (i.e. medical, taxes, fines, etc.) is yours and is not affected by the automatic stay. You are responsible for it. The automatic stay is a tool used to protect you against existing creditors pursuing repayment and goes into effect the day you file. Your only option is to pay the amount due via a payment plan through the IRS or in full. Do not ignore this! The sooner you act on it the better. Fees are racking up!

[spidge]

Sorry to hear of your new challenge, but there is a way to skin this cat. Any taxes already in your BK13 plan is counted as a payback plan and the IRS will only allow one at a time. Call the IRS 1-800-973-0424, the BK or Insolvency department and they will assist you. I was told to send in what I can when I can. If on the other hand you have no IRS tax owed in your BK13 plan you can enter into an agreement. I don't think the trustee would care as long as they get their payments.

Let us know how you make out, and good luck.

[spidge]

Any debt incurred post filing (i.e. medical, taxes, fines, etc.) is yours and is not affected by the automatic stay. You are responsible for it. The automatic stay is a tool used to protect you against existing creditors pursuing repayment and goes into effect the day you file. Your only option is to pay the amount due via a payment plan through the IRS or in full. Do not ignore this! The sooner you act on it the better. Fees are racking up!

Will owing a post filing tax amount put a ch13 discharge at risk?

[sophieanne]

Thanks Andy,
I appreciate your note. I spoke to the IRS and they said they would do a payment plan *big sigh*

[justbroke]

Will owing a post filing tax amount put a ch13 discharge at risk?

I have not read any instance where it has. The real problem is letting the unpaid tax sit and then the IRS contacts the Trustee. In some cases, debtors have been able to have post-filing taxes added to their Chapter 13 (in certain circumstances).

It is best to take care of the issue before it becomes a crisis. If the IRS allows you to enter a payment arrangement, then I would do so. (You could find out pretty quickly by attempting to use the Online Payment Agreement (OPA) application at the IRS website. You would select the term and the amount that you can pay. They allow agreements up to 6 years, but I think you should pay this quicker -- maybe 2 years. I do not know what the current interest rate for IRS debt, but you will pay interest on this. As suggested, immediately pay as much as you can to reduce your interest.

[sophieanne]

Hi Justbroke (and update for Spidge),

After reading both of your notes...I contacted the IRS ..and I'm now in a 2 year payment plan (which I start paying June 1st). I will send an extra amount June 1st just to reduce some of the interest and will pay it out early when possible.
I also filled out a form to pay more tax at work. What a major shock....oh well 34 months to go....

Thank you both again...this site has helped me so many times...I'm glad we have it and each other to ask questions of....

[justbroke]

You did a very smart thing by changing your deductions. I just had to change mine last year because I kept owing each year!

[wd2005]

I had to adjust mine for this year after owing $3500 for last year. I filed ch 13 in December so its going in post petition. The Trustee actually wanted to go after some of my exemptions but after finding out I changed my deductions, she changed her mind.