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.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).