Bankruptcy chapter 7

Why is the IRS asking for my 2015 return?

I filed Ch. 7 in late May. I listed the IRS as a creditor in regard to unpaid tax debts for 2011 and 2012. I have not yet filed my 2004 taxes. (I filed for an extension in April.) A few days ago, I received a letter from the IRS stating that I must file my 2015 return immediately or they may file a motion to have the bankruptcy “converted or dismissed.”

What is the IRS up to? What does my 2015 return have to do with the bankruptcy??

Thank you for your assistance.

File before the new laws go into effect

My advice is to file before the new laws go into effect. However you know it will be a while before you can obtain new credit. Also does anyone have info on how to fill out the Chapter 13 repayment plan? I am filing Chapter 13 myself, but I do not know how to fill out that form.

My understanding is that you do have to be able to show that you are unable to make your payments. So make a list of all of your regular scheduled bills; car, home, student loan, each credit card including its balance and the minimum payment that is currently due, any other regular scheduled bills such as utilities and a high average of what they are, include insurance premiums averaged out on a monthly basis (if you pay them every six months or annually, just add them up whether they are due or not and divide them by 6 or 12 to get the amt that you would need on a monthly basis), include money for groceries, health expenditures, veh repairs, clothing, etc.

Anything you know that you either have to pay for each month or have a good chance of needing a few times a year. If this monthly amount exceeds what you take home, you should be eligible for bankruptcy. If it doesn’t then call each of your card co.’s and find out how much your minimum payments will go up to and see if that amount exceeds what you bring in. If it does not then you are not eligible.

Chapter 7?

If my debt is overwhelming with no possible end in site but my accounts are all current and no payments are late, is bankruptcy still an option? I have heard recent news of credit card companies raising minimum payments to as much as double the current amounts. If that happens, I will be late or have under-payments on all of those bills.

By that time, the new bankruptcy law will be in effect. I’m scared this situation is just waiting to pounce on me. If I initiate ch.7 now, maybe I can get out from under the massive, $34K credit card debt I have and be able to pay my car, student, home loans without problems. Is bankruptcy even an option if I’ve never missed a payment?

Here is Dave’s opinion: