QUESTION
Can my plan be modified/adjusted to include taxes that weren't paid in the plan? If not, what are my options?
Asked on Feb 20th, 2014 on Bankruptcy - California
More details to this question:
My chapter 13 bankruptcy is in the process of being discharged (i.e., I am no longer paying into the plan and awaiting discharge papers from the Trustee) and I have just received notice from the State, stating that I still owe for back taxes (1996 -2004), taxes that were supposedly included in the bankruptcy plan.
5 ANSWERS
My suggestion is to obtain a copy of the trustee accounting on your case as well as looking at the proof of claim that the tax authorities filed. It is unfortunate that you discovered this at the end of your plan rather than earlier on when you could have rolled with this punch.
Answered on Feb 25th, 2014 at 5:22 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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You should review this with your lawyer; It does not sound like the taxes were paid in your plan, and, if taxes were from after you filed your case, they aren't automatically paid. If your plan is about to be discharged, you might want to discuss filing a new Chapter 13 with that attorney or a new one, to pay those debts.
Answered on Feb 25th, 2014 at 4:52 PM
2 Awards
It depends on how long you have been in the 13. If you have been in five years, you have met your limit and you must be discharged. If not, you can amend your plan to include the taxes as long as they can be paid within the 5 year time frame. However, you may first want to do a tax analysis to determine if the taxes are dischargeable.
Answered on Feb 21st, 2014 at 8:58 PM
Debt Relief Attorney serving Anaheim, CA
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Marlin Branstetter Attorney at Law
You should contact your attorney and the Chapter 13 trustee to find out why the taxes were not paid through the plan. Also contact the Franchise tax Board to see if they filed a claim. Generally the plan cannot be modified if it has been completed and the length of the plan cannot exceed 60 months
Answered on Feb 21st, 2014 at 5:47 PM
Litigation Attorney serving Stockton, CA
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Patrick Jay Edaburn
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In general taxes are not discharged in a bankruptcy, though given the age some of them might be. Assuming they were listed on the creditors schedules you should talk to your bankruptcy attorney
Answered on Feb 21st, 2014 at 5:46 PM