I wanna thank everyone for the expert advice, it has really be appreciated. And after a few days to process all this, I've come to terms with this is just a horrible learning experience that I'll now have to weather. This has shown me just how bad being an independent contractor can be, especially if you're not prepared or informed of the pitfalls ahead of time. The only way I know to handle this without becoming a huge financial burden on the family is to take the full 72 month term in order to keep the payment low. I'm already going to have to pay around $700 a month to the IRS to keep up with my quarterly taxes moving forward, so with this on top of it I'm going to be around $900-$1000). Or in other words, I just doubled my mortgage costs per month. Not an easy thing to handle, but it is what it is.

Does anyone know what I can expect to pay on a $8,700 installment plan spread over 72 months in fees, interest and penalties? I'd at least like to be prepared.