Hi, I've been unemployed for the last 18 months and I've finally given up and am about to file Chapter 7. However, I just found out that I owe $1500 in federal and state taxes for 2010. Needless to say, I don't have the money to pay it from my puny unemployment checks. My parents will loan me the money to pay it, but will that raise a red flag? Should I file for an extension and wait to pay until after I've filed for Chapter 7? I honestly didn't think I'd owe nearly that much, and I don't want to do anything to put the Chapter 7 in jeopardy. Thanks so much for your advice!
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I just went through same thing. I am filing CH7 this week....I FILED my taxes, but did not pay them...I will just get on a payment plan...as Im sure you are aware they cannot be included in the BK filing. SO, just file your taxes (so you arent given yet another penalty for filing late....), then get on a payment plan. Unfortunately we ll have to pay some late penalties and interest, but it will keep them from garnishing..the BK only cares if you have a REFUND coming. But, to be safe, I wouldnt take any large amounts of cash from family members at this time as the trustee might not like it. -
You will have to wait until after you are discharged before you can set up a payment plan. We were on a repayment plan before we filed. After we filed, the IRS halted our payment plan, and told us to resume when we were discharged. Once we were, then 'Hub contacted the IRS and reinstalled our payment plan. The IRS will work with you. All you have to do is keep them informed.
And I agree with the post above. Do NOT take any cash from your relatives at this time. Good luck!
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