CHAPTER 7 BANKRUPTCY AND US TRUSTEE LIQUIDATION OF NON EXEMPT ASSETS

Asked about 1 year ago - Cherry Hill, NJ

THE VALUE OF ALL MY NON EXEMPT ASSETS (ESTIMATED LIQUIDATION) IS JUST ABOUT ENOUGH TO COVER WHAT I OWE THE IRS. THERE ARE NO OTHER SECURED/PRIORITY CREDITORS, LIENS OR JUDGEMENTS. THERE ARE OTHER CREDITORS BUT THEY ARE NON SECURED. IF I CAN MAKE A PAYMENT DEAL WITH THE IRS DURING THE COURSE OF MY CHAPTER 7, CAN THE US TRUSTEE STILL FORCE A LIQUIDATION IF THE IRS ACCEPTS A PAYOUT OVER A NUMBER OF YEARS. AT THE END OF THE DAY IN A TOTAL LIQUIDATION THEY ARE THE ONLY ONES TO GET PAID. IF THE US TRUSTEE FORCES SALE ZILCH IS LEFT FOR ANYONE ELSE. HELP

Attorney answers (3)

  1. Scott Benjamin Riddle

    Pro

    Contributor Level 20

    2

    Lawyers agree

    Answered . You overlook other creditors who would need to be paid - the Trustee and other professionals. You made the choice to file a Ch.7 and there is no "do over" after the Trustee finds assets and starts to liquidate. This was something to discuss with your lawyer before filing.

  2. Dorothy G Bunce

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . You probably ought to get an attorney to represent you as filing Chapter 7 under these circumstances will be costing you a bundle, not to mention the aggravation. Properly structured, a Chapter 13 could allow you to make payments to satisfy your IRS debt at 0% interest with no more penalties, retain all the nonexempt property without it being liquidated, and allow a discharge of your other debts. There is a reason why people pay bankruptcy attorneys a substantial fee for a Chapter 13 - because it can save you a lot. Hope you don't end up learning the hard way that without a license to practice law & years of experience, you are not qualified to plan for bankruptcy on your own.

  3. Diane L Gruber

    Pro

    Contributor Level 18

    Answered . The IRS is a priorty creditor, so they will get paid first. Other unsecured creditors' amounts will be discharged.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more

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