My BK was filed a couple weeks ago. I have an installment agreement with the IRS & FTB. They stopped sending me bills and debiting my account for the payments I agreed to make. Why? Does anyone know what happens with my installment agreements? If my bankruptcy is discharged will I be able to continue my payment plan with them or will they demand payment in full? The taxes are from 2009 & 2010.
-
-
Bankruptcy stops ALL collection activity, even by that of the IRS and FTB. After the BK is discharged, you will need to contact each and simply reestablish the Installment Plan (assuming none of the tax debt is discharged).
What happened is entirely normal and is what is supposed to happen. -
I'm somewhat in the same boat - I've read a gazillion times what IRS has on their website re BK - you CAN send them payments - just make sure you put all info on the check - they may NOT take it from you (or they may) but IF YOU CAN AFFORD IT!! I'd send it anyway, with proof of mailing...after BK, it looks "better" and you'll find it easier to redo the payment plan (not that they wouldn't do it anyway).
HHM is of course right - they cannot collect from you while you are in BK.Comment
-
I'm just afraid that they will deny my installment agreement once the BK is over. I don't want them to garnish my paycheck or demand payment in full. Is there a probability that that may happen?Comment
-
mellisa, I REALLY don't think so (in fact I'll venture a firm NO)- IRS actually makes money on the installment agreement - if you are paranoid (like me :-) then just continue to send the payments as usual - JUST be aware that:
a) they may not cash the checks
b) they may send them back to you
c) they may cash them and then issue you a refund.
Either way, you show that you're making your payments.Comment
-
Thank you guys! I'm just a basket case - super stressed & paranoid.Comment
-
NO you're not ' I AM THE ONE WHO IS PARANOID!!!Comment
-
You shouldn't have any problem with IRS. Now, the FTB may be a different story, they are a pain anyway.
Comment
Comment