Legal Question in Bankruptcy in Texas

Ch 13 & questionable IRS docs - TX

I'm on the verge of filing Ch 13 bankruptcy; following a nearly two-year battle w/my son's seizures caused by an accident on our property. My question is this: When I applied for our home & 2nd mortgage loans, instead of using the tax forms I sent to the IRS; I used the ones made by my CPA before taking all the deductions (which obviously shows a higher income). I'm afraid if I file Ch 13, my creditors will see this discrepancy and I could go to jail, face a heavy fine, or be disqualified from filing. Is this true? Should I disclose this information to the attorney I choose to handle my bankruptcy case? I know I blew it; what I don't know is what happens from here. I have a B&B associated w/my home. So, if I lose my home, I also lose my business.

Sincerely, Tangled in Texas.


Asked on 10/13/00, 1:53 pm

1 Answer from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Ch 13 & questionable IRS docs - TX

I can only give you a general answer without seeing the documents associated with the transactions you speak of. Generally in a Chap 13 the issue of dischargability does not come up in the context of fraud, as it does in a Chap 7. In your case it appears that the two loans you are concerned about are both secured by liens on your house. this means that you will have to pay both of them in a Chap 13. As long as the loans are provided for and paid in the Chap 13 plan, according to their terms you will probably not hear any complaints from the lenders. Usually you big relief in a Chap 13 comes from your ability to take care of your unsecured debt for pennies on the dollar. For secured debt you have to pay the debt to keep the collateral.

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Answered on 11/06/00, 4:50 pm


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