We were notified yesterday of a huge change in owing money to the IRS while in an open bankruptcy. We owed the IRS about $1300 this past year. We always try to not owe anything to any tax agency. For some reason, this past year we owed money. The Insolvency Agent at our local IRS office said that because of owing money that she was going to petition the court to have our case dismissed. We are 100% current on our payments. The case is about to be discharged in a year. Over $1300! Who wrote these laws? I know that you have to get permission to incur debt over $500 while in bankruptcy. But, the IRS is not debt I believe. It's a tax issue. I believe that debt would be such a loan, credit card, credit. The IRS is a government agency.
I would have believed that if there were a new regulation that my attorney would have known about it. She called me today and said she never knew of such new ruling. She even called the chapter 13 Trustee who is handling my case and he even said that the is ridiculous.
We have so much red tape in this country. I know only 25% of all chapter 13 cases are discharged successfully. We should have been in a chapter 7 because we don't own any property. It's because of the new tax laws in 2005 that forced middle income people to file a chapter 13. We almost qualified for a chapter 7 but couldn't because of my income. I might welcome my money back. I could pay off the IRS with my payments that I make to the court in about 2 months.
Thanks.
I would have believed that if there were a new regulation that my attorney would have known about it. She called me today and said she never knew of such new ruling. She even called the chapter 13 Trustee who is handling my case and he even said that the is ridiculous.
We have so much red tape in this country. I know only 25% of all chapter 13 cases are discharged successfully. We should have been in a chapter 7 because we don't own any property. It's because of the new tax laws in 2005 that forced middle income people to file a chapter 13. We almost qualified for a chapter 7 but couldn't because of my income. I might welcome my money back. I could pay off the IRS with my payments that I make to the court in about 2 months.
Thanks.