IRS Debt and Chapter 13
By the filing of a chapter 13 it made her life better. When she came in the office she was making minimum payments on her credit cards of $550 a month and then she received a letter from the IRS for eight thousand dollars wanting a minimum payment of three hundred.
The chapter 7 would have discharged the credit card debts but not the IRS because it was from the last two years. It would have helped but the IRS would keep charging her interest and penalties on the money owed.
The chapter 13 was a plan to put the IRS of eight thousand and the credit card debt of 14 thousand in the plan. The payment worked out to be 225 a month for sixty months.
The chapter 13 stops all interest and penalties on the IRS and the credits cards the amount they receive is base on the amount of disposable income that she has.
After she completes the chapter 13 her credit will be better than it has been for many years because of the debt to income ratio, and the bankruptcy will fall off her credit two years latter.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
