Tax Installment Agreement and Ch. 7 Filing

[Fresh]

Would someone verify that what I am thinking is correct? I've read through the tax section and I cannot find the answer.

I had an IRS Installment agreement in effect right before I filed for Ch. 7 bankruptcy. I paid an installment before I had filed and I'm wondering now whether that agreement is no longer in effect with my filing. Are any payments after filing I make merely voluntary and not mandatory? I've called the IRS and two people have sent me to insolvency. One of the reps gave me an insolvency number and there was only a recorded message with an address if you wanted to make a voluntary payment since you had filed Ch. 7.

I would rather wait until my bankruptcy is over to start a new installment agreement. I've got some money from 2009 that will not be discharged and need to be put into an installment plan.

Any replies are greatly appreciated.

~Fresh~

[gmk]

Soon after I filed in April I received a letter from the IRS advising me not to send in any payments. The letter went on to state that I could re-apply for an installment plan after the BK is cleaned up. However, the letter further went on to say that if I voluntarily continued to make the existing plan payment then the IRS would continue with the installment plan after BK.

What I just wrote is first that I had heard of a continuation so I'm not sure it would apply to you. FWIW, I owe the IRS app. $6,400 in non-dis-chargeable back taxes and app $2,300 for this filing year that is not yet covered by a repay plan. I don't know what will happen with the $2,300 but I suspect an installment plan will be OK'd.

[Fresh]

Thank You

I'm sure an installment plan will be allowed for your situation. I thank you for what you wrote. Still have not received any letter from IRS, but your input helps very much.

~Fresh~

[AngelinaCatHub]

Soon after I filed in April I received a letter from the IRS advising me not to send in any payments. The letter went on to state that I could re-apply for an installment plan after the BK is cleaned up. However, the letter further went on to say that if I voluntarily continued to make the existing plan payment then the IRS would continue with the installment plan after BK.

What I just wrote is first that I had heard of a continuation so I'm not sure it would apply to you. FWIW, I owe the IRS app. $6,400 in non-dis-chargeable back taxes and app $2,300 for this filing year that is not yet covered by a repay plan. I don't know what will happen with the $2,300 but I suspect an installment plan will be OK'd.

Been there, done that:

I received a letter simply telling me to NOT pay any more at this time. No other instructions.

It stated that under the law, they would stay the payments and it was from another office, like what was mentioned.

After my discharge, then I got a letter to levy, et. al. and I simply called the number on the levy letter. They actually (believe it or not) very nice and set me up for another payment plan with the additional year I incurred.

Be cool to them. it will not hurt. I owed 27K. I'm down to 17K at 400 a month. It hurts big time but, better than before bk. We are doing well and living better with less. It CAN be done. 'Hub

[StartingOver08]

Fresh, I too have BTDT. Stop paying for your last installment plan while you are in BK.
When you are discharged make a new installment plan with the IRS including all the past due taxes even the new 2009 tax bill. You can only have one installment agreement going at a time so it is a perfect way to cover the deficit.