I’m paying $155 a month to the IRS through an installment agreement, but I can’t afford that and the attorney fees for Chapter 13 bankruptcy. Can I stop paying the IRS to cover the bankruptcy costs instead?
Yes, if you file for Chapter 13, the IRS debt will be included in your repayment plan. You won’t need to keep making the separate $155 payments.
Griffin said:
Yes, if you file for Chapter 13, the IRS debt will be included in your repayment plan. You won’t need to keep making the separate $155 payments.
Exactly. Once the Chapter 13 case is filed, the automatic stay will stop IRS collection efforts, and the debt will be managed through the plan.
Griffin said:
Yes, if you file for Chapter 13, the IRS debt will be included in your repayment plan. You won’t need to keep making the separate $155 payments.
Just make sure to confirm with your bankruptcy attorney when you can stop paying the IRS so you don’t run into any issues.
When you file Chapter 13, your payment plan will consolidate all your debts, including what you owe the IRS. The monthly amount depends on your income and expenses.
Paz said:
When you file Chapter 13, your payment plan will consolidate all your debts, including what you owe the IRS. The monthly amount depends on your income and expenses.
True. Your attorney will help you figure out how much of the IRS debt will need to be repaid through the bankruptcy plan.
Stopping payments to the IRS without proper guidance could cause problems. Talk to your attorney first to make sure the timing aligns with your Chapter 13 filing.
Phoenix said:
Stopping payments to the IRS without proper guidance could cause problems. Talk to your attorney first to make sure the timing aligns with your Chapter 13 filing.
Good advice. The automatic stay only kicks in once the bankruptcy is filed, so be careful about stopping payments too early.
Chapter 13 can help you manage your IRS debt more effectively, but you’ll need to factor in how much will actually be included in the plan. Consulting with your attorney is key.
If you’re struggling with both IRS payments and attorney fees, let your attorney know. Some attorneys offer payment plans for their fees to make it more manageable.
Jensen said:
If you’re struggling with both IRS payments and attorney fees, let your attorney know. Some attorneys offer payment plans for their fees to make it more manageable.
That’s a good point. Many bankruptcy attorneys understand financial struggles and might work out a payment plan with you.