Question regarding bankruptcy and IRS payment plan

[Jordanb04c]

I recently had a successful discharge of chapter 7 bankruptcy (filed in June 2016 and successfully discharged in September 2016). Prior to that, I had a payment plan with the IRS for some taxes owed (it was taxes on a student loan with total taxes due about 950) and I was making consistent payments of 20 dollars a month... my assumption was that the payments would continue post bankruptcy. I just recently received a notice from the IRS that they would be levying property if I didn't pay the full amount owed to the IRS... so I'm wondering if the halter 7 bankruptcy disrupted my payment plan? If I had a payment plan prior to bankruptcy, why wouldn't it just continue after bankruptcy?

[justbroke]

IRS payment agreements (PAs) are automatically cancelled upon filing of a bankruptcy. If you had been in a Chapter 13, the IRS would have been a priority creditor and would have been paid in full in order to receive the discharge. Since you filed a Chapter 7, the PA was cancelled and the IRS was prohibited from collecting while your case was in progress (known as the automatic stay).

Now that your case is discharged, the IRS can now collect and as you have seen, has started the collection process once again. The simple thing to do is to just enter into another PA. As you may know, you can enter a PA online and this is known as the online payment agreement.

Bottom line, either enter a new payment agreement, pay the IRS in full, or be subjected to IRS' collection techniques.