Tax questions on chap 11 or 13

[limping805]

I am confused regarding the option which would best fit my situation.
I owe about 32K for IRS taxes that will be 4 years old this October.
My car was returned to the bank about 4 months ago 10K and about 30K in credit card debt that has not even been touched or paid on in 6 months with no excessive charges before then (IE luxury items like "wants" not "needs")

My question is I just got off the phone with the IRS and they advised me that the only way to release the IRS debt was to go 13 not 11 or 7??
My goal would be to clear all this debt which is due to loss of job and partner who had a substantial income while things had been "GOOD".

I want to do this in October but now I am confused, or is it possible that the IRS is AGAIN doing what they do best COLLECT and to mis-inform!!

Please any info is appreciated

[justbroke]

I think your IRS person is confused. A Chapter 11 is just a non-consumer or consumer Reorganization Plan which is just more structured than a Chapter 13 (which is strictly for consumers with certain limits... about $1M for secured debt and $336K for unsecured debt).

I highly recommend you consult with a Chapter 11/13 attorney and ask them these questions. Your taxes are 4 years old, and may also be dischargeable (if the IRS doesn't hasn't already placed a lien on your property).

[HHM]

There are several factors that go into determining how tax debt would be dealt with.

In your situation, you would not do chapter 11, which leaves you chapter 7 or 13. Chapter 13 is the payment plan. The benefit of a 13 is that monthly payments are first devoted to your tax debt. You should speak to a bankruptcy attorney to clarify your options vis-a-vis your tax debt.