despritfreya, you are right that I elected to try to protect the money I had in the bank with the hope I could cover the taxes some other way. What I was never told or understood until literally the last minute (this is 1 year after filing) is that I would eventually have to pay an amount equal to the $50k I was trying to protect. Had I known that in the beginning I probably would have taken a different approach. And as far as what would be exempt or non-exempt, that language may have been in some of the legal documents I received, but I had no idea how it would apply to my savings and that was never explained to me. That’s why I hired an attorney; I have no legal background and didn’t even know anyone who had gone through anything like this who could give me advice.

Prior to filing I consulted with the attorney and asked what options I may have and specifically to protect the money I had in the bank. Chapter 13 was presented as my best option but there was no mention of having to pay back $50 grand until 1 year into this and right before my plan was to be submitted for final approval. So now I have the hindsight to look back and say yeah, there were better options available. Hindsight is always 20/20. People may want to criticize me for not knowing what would be exempt or not exempt, but the fact is I did not know and that’s why I went to an attorney to begin with. With the knowledge I have now, filing Chapter 13 would probably be the last option I would consider.

The actual amount I previously owed on the taxes is probably 50% paid, based on the payments I have made to date. And that’s even if I am unable to dispute the amount the IRS said I owed, which according to the attorney, I would never be able to dispute again. I have 2 years of payments remaining followed by a balloon payment of roughly $20,000 and I have no idea how I can continue to meet the payments on my plan. I owed taxes and have no problem paying what I owed. But I think I do need to ask the court to reconsider my plan based on my current financial situation and employment prospects.

As far as having faith in the attorney I used, I can tell you that the attorney and everyone at the firm that I dealt with were actually quite knowledgeable and competent. I think the biggest problem I faced then, and now, is that I was one of maybe 1,000 clients a month being run through their firm. I was shocked at the number of people filing for bankruptcy and now know that unless I am paying tens of thousands of dollars, I can never expect any type of individual attention. The law firm is quite competent and in the end, I can say I probably got what I paid for. I think it would be advisable to at least consult with another attorney, but in the end it may be better to stay with this firm. They already have all my paperwork and the only thing that has changed would be the amount of money in my savings account. Literally nothing else has changed as far as income, assets, means test, nothing.

Thanks for your comment and advice.