Legal Question in Bankruptcy in Illinois

Chap 13 to Chap 7, IRS Taxes & home foreclosure...

We have been in Chap 13 for a little over a year. It has now been 3 yrs since our IRS taxes were due, but lawyer says we can't wipe them out with Chap 7 because we've been in Chap 13 for a year, and that time does not count towards the 3 yrs. In the meantime, we haven't been able to make house payments & were going to let it go with the Chap 7., but now our lawyer says we need to stay in Chap 13 with lower payments & let home foreclose. Questions: Are we still liable for debt on house if it sells for less than owed? Would we be better off to file Chap 7 anyway and try to make re-payment plan with IRS? I'm afraid the interest & penalty during this time would be outrageous! And they aren't easy to work with. Husband has some retirement and SSI, that's what we are living on.


Asked on 4/25/04, 3:06 pm

1 Answer from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Chap 13 to Chap 7, IRS Taxes & home foreclosure...

I find it unethical to answer questions from people who are already represented by counsel. Seems that your lawyer's advice thus far is accurate. WHY DON'T YOU ASK YOUR LAWYER--THAT'S WHAT YOU ARE PAYING HIM/HER FOR.

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Answered on 4/25/04, 7:30 pm


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