Tax payments halted?

[DEBTCHAINS]

Hi all,

We've filed Ch 7, have court hearing next month.

We owe a few hundred to the state of CA in taxes from last year, have been on an autopay every month. They sent a letter stating they couldn't take payments until we were discharged, and they'd look at another program at at that time.

Federal, we owe a few thousand. I just sent a payment, and am wondering if they'll do something simliar? Or does Federal operate differently? I'm not on an autopay with FED, I send a payment every month.

[CCsAreEvil]

Hi all, Federal, we owe a few thousand. I just sent a payment, and am wondering if they'll do something simliar? Or does Federal operate differently? I'm not on an autopay with FED, I send a payment every month.

I don't have an exact answer but being the IRS, they probably have highest priority over any other entity. The IRS will not refuse your payment and probably still expect it. I doubt the BK court will complain at all about that. How much is your monthly payment anyways to the Feds?

[DEBTCHAINS]

235 a month. I'd actually welcome a stall on that until everything is settled. As it is, we've got 1500 more to come up with for our lawyer. I've missed a payment or two to the Feds, and nothing has been said. I figure anything I send and they cash, I'm that much closer to being done with it, so whatever, I was just curious.

[CCsAreEvil]

Well, even though the IRS won't reduce your amount owed. I bet you can call them and work something out (skipping/stalling payments). Of course, they may still charge more fees, but it may help you in the long run. Explain that you are currently in the process of BK. Can't hurt.

[StartingOver08]

If you have an installment agreement with the IRS in place before you file BK, the IRS will suspend collections during the course of your BK.

Once you are discharged, get back in touch with them and make a new installment agreement. It is very easy to do and they are very cooperative (at least they were with me).