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I owed the irs more than $65,000.They put a lien on my

house.I am now in a...
I owed the irs more than $65,000.They put a lien on my house.I am now in a chapter 13.The irs debt was included in my chapter 13 and will be discharged after 5 years of payments.My question is,can I sell my home in a year?.I'm assuming at least $40,000 by then.Will the IRS take the equity if I sell before my 5 year payment plan is done?
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Answered in 6 minutes by:
9/16/2016
Law Tutor, Esq.
Law Tutor, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 165
Experience: N/A
Verified

Hello. I am an attorney with over 20 years of experience and I look forward to assisting you today. I would be happy to provide general information regarding your question.

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Generally once the IRS places a lien on the property, it becomes a secured debt and attaches to the property. The debt must be paid back 100%, usually once the property is sold or refinanced or in your case, through your chapter 13 Plan. Although the debt is being paid through the life of your Chapter 13 plan, the provisions of the plan apply if you complete the 60 months. If you sell the property before the plan is completed, the IRS would get the full amount due to them and then your Chapter 13 plan would need to be modified to reflect the fact that you know longer owe them. Also, please keep in mind that your attorney would need to obtain permission from the court in order to sell the property, which usually is not a problem. Would you like to discuss this more in detail by phone? I hope this answers your question. Do you have any other questions? I am here to help.

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Customer reply replied 1 year ago
ty for your quick response.5 stars!!
Customer reply replied 1 year ago
that's weird.I can't give you a rating.I'll try to restart the program.

Thank you. Let me know if you need anything else. By the way, I am a bankruptcy attorney and I would say that you would be better off staying in the house for the 5 years and keeping your plan payments current and then sell the house at that time if you desire. This way, the taxes will be paid and any arrears will be paid and you will net more from the sale of the house at that time. Your case is exactly what Chapter 13 is designed for. Good luck to you. Thanks for the 5 stars! I think you can click on it now. Take care - and remember - there is life after bankruptcy!

Law Tutor, Esq.
Law Tutor, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 165
Experience: N/A
Verified
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Law Tutor, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 165
165 Satisfied Customers
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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).

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