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  1. #1

    Default Avoiding A Federal Tax Lien

    I owe Trust fund taxes from a failed business to the IRS/city and state. I filed chapter 7 last week because I also have about $100k of unsecured debts as well. If everything goes well I should be able to keep my home (about $15k to $20k in equity).

    The IRS sent notices to collect, but no liens, yet. I would like to make an OIC, but fear the lien will be filed anyway and remain until paid resulting in an almost nill credit rating. My question is, if I sell my home IMMEDIATELY after the chapter 7 discharge to settle at least most of this debt (before they have a chance to file a lien), can I do an OIC for the balance after that (the premise is....I won't have anything left of value to lien and I'm making an attempt to pay the debt)? Or is it better to accept the lien and just file the OIC and deal with it the best way I can from there? The only other thing of value I own is my car valued at approx. $6k.

    What bearing with the schedules (disposable income, value of home, etc.) from my bankruptcy have on my OIC since it is recently filed?

    Also, would a non-dischargeable chapter 13 be advisable after the chapter 7 discharge to pay the taxes back in full even though it will mean I will need to get a second job to be able to fund it?

    This keeps me awake at night and any advice is well appreciated. Thank you.

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
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    16,307

    Default Re: Avoiding A Federal Tax Lien

    Have you discussed this with your bankruptcy attorney?

    S/he's going to have a better grasp of your situation and will be able to advise accordingly.

  3. #3
    Join Date
    Sep 2005
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    Behind a Desk
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    98,846

    Default Re: Avoiding A Federal Tax Lien

    Right. We don't even know how much you owe in taxes.

    I would be wary about selling your house and turning your home into a cash asset, as I fully expect the tax authorities to inquire how much cash you have on hand when you try to make an offer in compromise.

  4. #4
    Join Date
    Apr 2008
    Location
    Las Vegas, NV
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    66

    Default Re: Avoiding A Federal Tax Lien

    I know that if you owe taxes for the prior 5 years, it cannot be included in a Chapter 7 BK. It would have to be a Chapter 13...

  5. #5
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Avoiding A Federal Tax Lien

    Quote Quoting diannamichaelson
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    I know that if you owe taxes for the prior 5 years, it cannot be included in a Chapter 7 BK. It would have to be a Chapter 13...
    However the amount of the debt still must be included in the chapter 7 bankruptcy and be part of the process. It cannot be ignored in that process.

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