Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
I understand the dilemma you have,and I understand the frustration you are having with the IRS.
Here's the situation.
First, once filed, the bankruptcy prohibits all collection action against you from all creditors, including the IRS (with the exception of tax refunds received while the case is pending).
Second, and the bigger issue here is whether the taxes will be dischargeable. My hunch is no, unfortunately.
To be dischargeable, tax debt must meet the following requirements:
1. must be income tax
2. must be for a tax year 3 years before the bankruptcy case.
3. taxes must have been timely and accurately filed, but if late or inaccurate, have been filed/corrected more than two years before the bankruptcy case is filed.
4. Must not have been assessed by the IRS in the last 240 days.
Depending on when these events occurred will determine dischargeability of the debt. Seeing that they disqualified you in July 2011, I think you might fail items 3 and/or 4 above.
Talk to your attorney, they can request a determination from the IRS to see if the debt would qualify for discharge. Otherwise, you would need to work something out with the IRS. Interest can still run on the unpaid portion while the bankruptcy case is pending, the IRS just cannot collect from you during the case.
The Automatic stay provisions of the bankruptcy code give you that protection, automatically.
Thanks for your question, let me know if you have any further questions. Good luck.
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