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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38507
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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California: BK protection & Automatic Stay. A relative called

Customer Question

California: BK protection & Automatic Stay. A relative called me this morning sobbing & explained her situation, ultimately came what I was expecting the question that's just as hard to ask as to say no. Her husband passed recently & did not reveal to her that he owed the IRS & he stopped paying the house payment so, as you know the IRS is relentless"! She was smart enough that before the IRS started levying she changed as many things as possible. The house will be sold in 10 days at auction & she says that the IRS has a stranglehold on her, I mentioned to her that an couple I know with a somewhat similar IRS & household problem went to see a tax attorney who also does bankruptcy helped them with an offer in compromise & got them an automatic stay on the house so that the could get some relief & catch up. My question is how much time will the automatic stay buy her? Also is it possible for the attorney to negotiate with the bank on a repayment plan for the back payments owed? Please advise

Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 1 year ago.
Hello, An automatic stay is likely to give your relative about 120 days of relief -- though, the IRS could request and obtain relief from the automatic stay in about 30 days (this is unlikely to occur -- because Uncle Sam knows it can force the sale after the bankruptcy is discharged in approximately 120 days). That said, an offer in compromise (OIC) may be a viable alternative. The IRS has made application for an OIC pretty simple. You don't really need to hire a tax relief organization or other tax professional to prepare the application, unless you're really uncomfortable with filling out government forms. If you need information for that, please let me know that my answer is helpful, and I will be happy to provide further information. I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.Thanks again for using!