Taxes YIKES

[DaisysMom]

I owe both Federal and State Taxes from past years. I am on a payment plan with the Feds but not the State yet. Can I still file a Chapter 7 while owing back taxes? I don't want to have to file a 13 just because of a few K of tax debt.

Anyone have any experience with this?

D....

[DaisysMom]

Bump....

Please anyone?

D....

[HHM]

Owing back taxes does not prevent you from filing BK, nor does it force you into one particular chapter.

If you file chapter 7, and you have non-discharegeable taxes, you will still pay them after your discharge. A chapter 13 is an option if the taxing authority won't play ball, you can force a payment plan onto them (the chapter 13 plan).

[bnkrptinva]

I filed and am on a payment plan w/Federal. It's just one more bill that knocks down my dmi, and will continue on once I'm discharged (crossing fingers my 7 is approved).

If for some reason my 7 isn't approved, then I imagine they are going to get preferential payment through a 13. Being I'm under the median (barely), if I'm forced into a 13, most of what I'd pay over 3 years will just be enough to cover the taxes and whatever additonal fees for the 13.