Lewisville, TX asked in Bankruptcy for Texas

Q: Hello, I need an opinion. Which is best if we have substantial IRS debt, chapter 13 or 7 and why?

we met with two attorneys and one recommended chapter 7 and the other recommended chapter 13 so we now are confused as to which is the best route since the opinions we not the same.

Related Topics:
3 Lawyer Answers
Stuart Nachbar
PREMIUM
Stuart Nachbar
Answered
  • Bankruptcy Lawyer
  • Livingston, NJ

A: Your question is hard to answer in a vacuum. Both have advantages.. if taxes are over three years old and all returns have been filed and no extensions done such as offer in compromise, then 7 good.

If tax are Leins, and under three years old or you tried other methods, then paying the part that is priority unsecured, and discharge the penalties and probably the Interest.

Sorry can't be more specific, but also note I am in NJ not Texas. Always consult with local reputable counsel. Search out reviews and ratings such as Martindale Hubbell

Timothy Denison and Anthony M. Avery agree with this answer

Thomas. R. Morris
Thomas. R. Morris
Answered
  • Bankruptcy Lawyer
  • Dexter, MI

A: You have not provided enough information to enable an attorney to answer the question. Neither chapter 13 nor chapter 7 is necessarily better to deal with the type of debt you have described.

Timothy Denison agrees with this answer

Anthony M. Avery
PREMIUM
Anthony M. Avery pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: Sometimes it is best to file Chapter 7 and discharge as many taxes and penalties as possible. Then file Chapter 13 and make payments for 60 months on the remaining tax debts, discharging all taxes. (Chapter"20") But if it is too much, then you cannot get a Plan confirmed. Then you are back to avoiding tax collection from your assets.

Timothy Denison agrees with this answer

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.