IRS Lien selling house

[brooklyn]

I am 30 days passed my 341 and about to throw up I am so nervous. I have a question.
I have a second home with a lien on it for $70,000 from the irs of old debt(2004)
Is there anyway to find out how much will be dismissed before day 60? How do I then go about having the lien removed?
I want to sell the house asap after the 30 days without reaffirming.
Thank you

[biotechsolution]

Didn't your attorney tell you that an IRS lien survives your bankruptcy discharge??
Meaning once you get your discharge you will be relieved of your IRS liability BUT the IRS lien will still be attached to any pre-petition assets you had.

If you house has any equity in it, the IRS can take it. You can't exempt any assets from an IRS lien.

[justbroke]

I am 30 days passed my 341 and about to throw up I am so nervous. I have a question.
I have a second home with a lien on it for $70,000 from the irs of old debt(2004)
Is there anyway to find out how much will be dismissed before day 60? How do I then go about having the lien removed?
I want to sell the house asap after the 30 days without reaffirming.
Thank you

You should talk to your attorney. Even if you try to sell it, the IRS lien is there, and they have priority status, so get their money up front.

How much equity do you have in the house? Are you current on your payments to your mortgage company?

You have many issues.

[brooklyn]

Didn't your attorney tell you that an IRS lien survives your bankruptcy discharge??
Meaning once you get your discharge you will be relieved of your IRS liability BUT the IRS lien will still be attached to any pre-petition assets you had.

If you house has any equity in it, the IRS can take it. You can't exempt any assets from an IRS lien.

Yes, I was told that. Thing is my house appraised for a lot less than it's worth and my attorney said they may not sell it and let it go into foreclosure. I would love to sell it if I could and use it to pay a tax bill that won't be dismissed.

I was reading here
http://www.bkforum.com/showthread.ph...+irs+dismissed

and

http://www.bkforum.com/showthread.ph...missed+chapter

And thought there was a chance they might release the lean IF it was excused?

Also, I have heard so many different opinions on what will be excused. I'm hoping for the whole thing.

[brooklyn]

You should talk to your attorney. Even if you try to sell it, the IRS lien is there, and they have priority status, so get their money up front.

How much equity do you have in the house? Are you current on your payments to your mortgage company?

You have many issues.

You may be right on the issues front and it may not be worth the hassle.

I have an offer for $98,000 more than I owe(House has been for sale for 2 years before I filed. Got an offer 2 days after I filed!). After Realtor fees I would have approx $75,000 left. If I have to pay IRS the $70,000, I actually end up negative because of capitol gains and I will just let the court or foreclosure take it.

Still, I was told if they didn't forgive everything that my lien lowers to the new amount? Or is this false?

If they release my $70,000 I would do cartwheels but I guess I was hoping for the cherry on top too

Also, if I just let it go, when will they take it?(I do not live in it but still have some things of personal value there ie pictures, books, etc)

BTW I quit paying my mortgage in april

[whipster1]

That lien attaches to anything not just the house. You should consider a 13 after your discharge to strip the lien.

[brooklyn]

That lien attaches to anything not just the house. You should consider a 13 after your discharge to strip the lien.

??? Didn't think I could file again for 7 years? Also, way to much work. Besides, it will be foreclosed on by then

[justbroke]

What whipster1 is recommending is an effective Chapter 20. It can be difficult to do it right, but you could file Chapter 13 after your Chapter 7 discharge in order to take care of the Tax debt. However you'd need to pay the $70K back over the maximum 5 year term of your Chapter 13. (Or about $1,167/month for 60 months.) The nice thing is that you would keep your profits from your home. The bad thing is, the Trustee coudl just take the $75K from the sale, and distribute to the IRS anyhow.

[cinderella]

What if you don't have any assets? I have an IRS lien but I may have to give up my house in a Chapter 7 which already has no equity. After that, I wouldn't own anything. Will the liens be released if you give up all your assets?

[brooklyn]

That lien attaches to anything not just the house. You should consider a 13 after your discharge to strip the lien.

Could you be more clear about "everything"(yes I'm serious) What else could it be attached to, I'm not keeping anything

[justbroke]

What if you don't have any assets? I have an IRS lien but I may have to give up my house in a Chapter 7 which already has no equity. After that, I wouldn't own anything. Will the liens be released if you give up all your assets?

If it's an IRS lien, it will just attach or wait to be attached to something else you own or will own in the future. We want our money... they want their money. LOL

This answer is based on an assumption that your taxes are non-dischargeable.

[brooklyn]

If it's an IRS lien, it will just attach or wait to be attached to something else you own or will own in the future. We want our money... they want their money. LOL

So if I buy a house in 10 years it will reappear?

[justbroke]

So if I buy a house in 10 years it will reappear?

The IRS would probably have garnished your wages and done other things to collect.

[brooklyn]

The IRS would probably have garnished your wages and done other things to collect.

So if the debt is dismissed after my chapter 7, how could they garnish my wages?

[justbroke]

So if the debt is dismissed after my chapter 7, how could they garnish my wages?

Okay, so let's take a step back. I think I got confused with two different discussions going on.

If it's from tax year 2004, due in 2005 without penalty... then generally it's dischargeable (not the lien). But...

You would also need to have filed the tax return 2 years before filing.

If this was an assessment that came later, it has been at least 240 days from the time of the assessment to the time of your filing the petition. So, so long as this was for 2004, and you filed a return

If all those are true... taxes are from 2004 due 2005 (okay), you filed a return at least 2 years from filing (before about June 2007), and it wasn't an assessment, or it was assessed after the taxes were due and at least 240 days before filing (about November, 2008).... then you can discharge it.

However, it won't discharge the lien on the property. If all of your pre-petition personal property goes back to the lender (car, home), then the lien will just go away. So, there are still questions as to what property you'll have left after this.

For your information, the IRS lien attaches to all personal property.