Question about owing IRS during Chp7

[IamIrene]

Little update on our amended 2009: looks like we won't be getting anything back, in fact, looks like we owe the IRS $345 instead.

What a blow to the gut.

So, how does that work? We've filed already, but I know IRS monies are not exempt. Do we set up a payment plan and just pay it now? Prior to our 341 meeting? While we are still in our 180 days? I've already got a call in to my lawyer...guess we'll see what he says.

Guess the bright side is: we are DEFINITELY a no asset case now.

[daxtell]

when i did my taxes for 2010 i owed the irs as well and i am a chap 7 no asset. the trustee told me to go ahead and file it before the discharge so he could have copies. which meant i automatically had to either pay it or set up payment arrangements. or course i had no money to pay it, i used what money i had to pay the attorney to file. so i used the form they have on their site and pick your plan and i put it on top of my return and mailed it in.

[AngelinaCatHub]

Since you have filed, they IRS will not bother you. If they do make sure they have been notified by the bk Court. Yes if you contact them AFTER your bk discharge, you can set up a payment plan. I'll pay yours if you pay mine. I owed 27K now down to about 12. 'Hub

[lowdoughshow]

angelina,
i see by your dates that this process took a LONG time(over 4 years?). why was there so long between steps? i am an asset case BK7 and i am afraid of losing my house and other properties. TR wants to sell everything. SHould i plan on this going on for YEARS??? Was yours an assetr case? can you she dsome light on this for me? thsnks much,

[angles]

lowdogh, expect an asset case to take a long time to close. We filed almost a year ago and the trustee has not even begun to take our assets. It took 8 months before we received a discharge and not until we did a little prodding with our attorney and him calling the Trustee. Some states are a little quicker, but for the most part it seems that many of the courts/trustees are overwhelmed.

My head use to spin thinking about different scenarios and what the trustee will and will not take and then I realized he will only go after what is not protected in the petition. I was honest in the filing and disclosed everything I could think of so I know I will only loose what was listed. And in the big picture I am willing to loose those assets for the exchange of no longer being responsible for the debt I had. That thought process helped me to relax and just simply let it go.

[lowdoughshow]

angles,

what type of assets did he sell from you? what state are you in? did you keep giving him 60 day extensions? i just gave him one.

[angles]

Kalifornia. we gave no extensions that i am aware of...it just took that long. and like i mentioned, he has not asked us for any of our assets and its been almost a year. i wonder if i can charge him a handling or management fee??

[AngelinaCatHub]

angelina,
i see by your dates that this process took a LONG time(over 4 years?). why was there so long between steps? i am an asset case BK7 and i am afraid of losing my house and other properties. TR wants to sell everything. SHould i plan on this going on for YEARS??? Was yours an assetr case? can you she dsome light on this for me? thsnks much,

Sorry not to get back for several days.

First of all, we only wanted a C13 to start. I had an enemy, a multimillionaire. We were worth 10 mil on paper in land and assets a couple years before. We donated our land with a life estate to Public use. We were in no hurry at that time, until my enemy came upon the scene. He was serially suing me, and we had money. The lawyers ate it all and as long as the automatic stay held out, we told are really crappy lawyer, that there was no real hurry. As things went, we filled out paperwork four times to bring it all up to date. Finally a timeline occurred and we filed by her on the last working day of the year. My adversary on the 59th day of the year gave us an AP for an unfinished suit. We never went to court. He wanted to bleed me not sue me. I succeeded. My lawyers lack of educating us, we made every wrong move. We were termed an asset case that caused further time, and then I (do to ignorance) made a preferential payment and got a 2004 hearing. All this added up to our costs. Then we got discharged but not closed as we had to buy back our assets (the little left) and to pay so that my payments to my god-daughter would not be sued from her. Then all that and the expenses from all that stuff had to by paid. This took more than a year.

Our case was not ordinary and could have been dismissed except for our obvious ignorance and honesty in our answers, we were given a chance to redeem all. It does not normally take long in most C7's. About 90 days.

So you see, this is why, after we became further educated, we stay here to advise others of errors we now know about. If what I now know, I could have known then, it would have saved us thousands and I would have gone pro se.

I hope this gets to you. 'Hub