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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17240
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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My question is a two-parter. First, Im in an open Chapter

Customer Question

My question is a two-parter.

First, I'm in an open Chapter 7 bankruptcy. I owe back taxes to both the IRS and State of Oregon. I just received a CP 503 notice from the IRS demanding payment of $10k in ten days. How do I respond to this letter? I'm underemployed and don't have the money to pay the bil right now.

Second, I'm due to start receiving unemployment benefits from the State of Oregon soon. Since I owe them back taxes can they garnish my unemployment? If so, how much can they take? Things are really tight and I need that money to survive.

Thanks in advance!
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
if you can't pay the whole amount, call the number printed at the top of the notice, in almost all cases the IRS will allow you to pay the back taxes in an installment agreement, they may also forgive some of the debt.

the state could garnish or take out money from unemployment, however, since you are currently in a bankruptcy the federal law does not allow garnishment orders while a bankruptcy is pending, notify the trustee and your lawyer is the money is being garnished automatically.
Customer: replied 7 years ago.
Thanks. Do you know how much of my unemployment the state could garnish?