Choosing between 7 and 13

[Anonymous]

My IRS taxes did not go away. In fact, an IRS rep was at my Chapter 13 hearing. They were the number one payback. Perhaps that is because it was a Chapter 13. I own family-inherited property and one of the reasons I chose Chapter 13 was that I did not want the land touched by the filing.

[TRC_WA]

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@Anonymous wrote:

My IRS taxes did not go away. In fact, an IRS rep was at my Chapter 13 hearing. They were the number one payback. Perhaps that is because it was a Chapter 13. I own family-inherited property and one of the reasons I chose Chapter 13 was that I did not want the land touched by the filing.

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Yep... IRS gets paid.... first.

On the list of my creditors and their monthly split of my payments my attorney fees were listed 2nd... behind the priority creditor Internal Revenue Service.  I only owed about $800 and the IRS got every dime before my attorney got a nickel.

[mynameainttracy]

Ours was attorney first, items that had an interest rate 2nd and IRS dead last (we owed them about $6k).

[CH-7-Mission-Accomplished]

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@FireMedic1 wrote:

IRS back taxes will be discharged if your a no asset and tax liens released also. Child support wont go away. 7 and be done with it. See my siggy.

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Actually, federal taxes older than a certain period of time can be discharged.  I can't remember how many years it is.  This is a question for an attorney.  My SO is a lawyer who does BK's.

[Anonymous]

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@CH-7-Mission-Accomplished wrote:

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@TRC_WA wrote:

I also did a 13... in April 2009 that fell off my reports last month.

It's my understanding that you don't get to choose whether you file a 7 or a 13... it's based on income and obligations.  If you make too much you may be forced into a 13.

I don't recall my attorney telling me I HAD to file a 13... but I wanted to keep my car at the time (2006 Chrysler) and I liked the idea of the attorney fees being included in my monthly payment plan... so I had to pay nothing up front other than the filing fee.

Back then I knew little compared to what I know now.  I probably could have done a 7... but it doesn't matter now.  I'm free and clear of it with clean reports.

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If there is an way on earth to avoid the 13 and file the 7, do it!   With a 13 you are stuck for five long years paying everything back and your credit scores will suck that whole time.  You can't even get new credit to rebuild.  A chapter 13 is nothing less than living hell.

You owe 100K in credit card/medical/failed business debt.  You have an upside down car.

File the 7, dump the car, and focus on paying off IRS and child support.   You can start rebuilding immediately with some secured cards and a credit builder loan.

If you are on the line for income, I would quit my job and hold out till I did qualify for a 7.

The only folks who should file a 13 are those who have to because their income is too high or they are trying to keep a house.  Otherwise, a 7 is always best.

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^^this

[TRC_WA]

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@CH-7-Mission-Accomplished wrote:

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If you are on the line for income, I would quit my job and hold out till I did qualify for a 7.

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... and that folks is what's wrong with the system.

It should rank right up there with fraud.  It's pretty pathetic actually... and that's all I'm gonna say about it because it definitely strikes a nerve.