How to Pay IRS Claims Through a Chapter 13 Bankruptcy Plan
Chapter 13 bankruptcy is a type of personal bankruptcy that arranges a payment plan where payments are made over a three to five year time span to a Chapter 13 Trustee appointed by the court. The Chapter 13 Trustee takes the payments made by the debtor and distributes the money to creditors under the bankruptcy plan. If you owe money to the Internal Revenue Service, they will file a Proof of Claim with the Bankruptcy Court in order to be paid through the Chapter 13 bankruptcy plan.
- Difficulty:
- Moderate
Instructions
-
-
1
Serve a copy of your bankruptcy petition on the Internal Revenue Service (IRS). Since you wish to include the IRS in your bankruptcy plan, you must notify the IRS that you have filed for bankruptcy protection. This will stop any collection efforts the IRS has pending against you.
-
2
Review the IRS' Proof of Claim. The IRS will file what's called a Proof of Claim. The Proof of Claim will show the Chapter 13 Trustee what you owe according to their files. You will have a chance to object to this amount if you think it is inaccurate.
-
3
Make payments to the Chapter 13 Bankruptcy Trustee. The Trustee will pay the IRS for you through your Chapter 13 plan payments. If you stop making plan payments to the Chapter 13 Trustee, your IRS claims will not be paid. Make your plan payments for the confirmed plan term, usually three to five years. Once you have completed your Chapter 13 plan, your debts, including any claims by the IRS, will be discharged.
-
1
