Tax Lien Question

[BKorbust]

I've been holding off on filing a chapter 7 until some of my tax debt is dischargable. In three months about 50K of tak debt will be dischargable in a chapter 7. The IRS has filed liens on my property for this debt. I know my obligation to pay the 50K will be discharged but what about the lien. From what I've read the lien remains. Does the lien remain if their is no equity in my house and the value of my personal belongings is negligible? My house is currently underwater 50K or so.

I have another 30K or so that will not be dischargable that I will either get on a payment plan for, file an OIC, or immediately file a chapter 13 right after my chapter 7 is discharget to pay back the money over 36 months.

Thanks in advance for any information..

[biotechsolution]

the lien remains, basically anything you had pre-filing is subject to the lien. You get no exemptions from the IRS, or basically very little. But in reality they are looking at your home, if you're underwater they may release the lien.
I would contact them and perhaps you may get them to release say for $1000.

One thing they will go after is if you have a 401(k) or any retirement account.
They reasoning if if you couldn't make your tax liability, you should have not contributed anything to a retirement account. They have won pretty much every case when taken to court.

[BKorbust]

Hi Biotechsolution,

Thank you for the reply. Unfortunately I have no 401K or retirement account so I 'm safe on that end (likely screwed in 25 years though when I retire). Interesting my revenue officeer knew I was underwater but filed the liens anyway. What a PITA.

BKorbust

[biotechsolution]

Make sure you stay on top of your bankruptcy specialist because they need
to close out your bankruptcy before you can set up your installment agreement.
Make also sure that you haven't been in an OIC, that will toll the time. If you had been in OIC you must wait 270 days plus 30 before those taxes would be dischargeable.

If they have recently filed the liens, I would look for a levy notice, either at your bank account or employer.

[BKorbust]

I should be good. I never filed an OIC. I got the levy notices a year or so ago. I've even been though a financial exam with the IRS and have been declared uncollectable. I'm sure they're going to want to revisit that again this year. I can't wait to get this monkey off my back. Thank you for the advise.

[MarieT]

what is an OIC?

[BKorbust]

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.