Chapter 7 w/ IRS Taxes

[ITTech]

Hello all!

I have a current bankruptcy Chapter 13 that was filed, No assets however IRS Tax Debt.

Is it possible to have this changed to a chapter 7 and handle the Tax Debt on my own?

The Tax Debt was updated and can barely even afford that Chapter 13 Payment.

Thanks in advance.

[justbroke]

You have a right to convert to a Chapter 7 so long as you qualified for a Chapter 7 when you filed. Conversion is simply by notice. A new 341 Meeting will be scheduled. It's possible that you may need to--based on your specific district's rules--need to file a new Means Test (122A/B) and new Schedules I/J.

However, please be careful. Unless you know what your terms will be under an IRS "Online" Payment Agreement (OPA) then it may be worse. Especially if you do the IRA OPA via payroll deduction. Remember, outside the bankruptcy the IRS get to keep charging interest on that unpaid amount. The current IRS OPA rate is 4% compounded daily (as of 8/30/2024).

You actually have more protection being in a Chapter 13.

Please consult with your Chapter 13 attorney on the numbers.