Just left my accountant and I owe 7500.00.

[Logan]

My attorney isn't available to ask but how does this affect my chapter 7 filing? Does it apply against income for the means test?

Logan

[FilingOnMyOwn]

You owe 7,500 to whom? IRS?

[CATCHMEIFYOUCAN]

If you can, and its not tooo late, I would definitely INCLUDE it as an EXPENSE (debt) you owe, AND I would immediately set up a payment plan IF it is the IRS. I knew I would owe the IRS in 2006 but by the time I filed BK, I couldn't list it on my BK. I owe about $4000 now.

Best of Luck, CMIYC

[Logan]

Yes, it is to the IRS. My means test was questionable but I imagine this will make it unquestionable.

Believe it or not, this doesn't bother me at all. I would rather owe the IRS than be in chapter 13.

I can go on an 18 month payment plan with the IRS.

Logan

[jal1129]

I am not sure that this will affect your means test, as its based on gross income not net.

[SinkingFast]

The IRS is a "special class" Creditor. I think that's what the BK Code calls them. The IRS/Taxing Authorities are treated like Priority Creditors, but they aren't really.

As far as the Means Test,.......... I **think** the $7500 will amortized forward over 60 months. For example,.............. Even tho you'll actually pay something like $425/mo ($7500 divided by 18) to the IRS, your Means Test will show a figure more like $125/mo ($7500 divided by 60) instead.

[CATCHMEIFYOUCAN]

My plan to the IRS was confirmed at $100 a month but of course I have been paying them more than THAT. With interest and penalties I owed about $5000 total. Oh yeah, I could handle paying the IRS rather than being in Ch 13 for sure !

Best of Luck, CMIYC