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Will my parents directly paying the IRS for my large tax bill affect me filing Ch 7 for large credit card debt?

Asked over 2 years ago - Chicago, IL

I have a large outstanding tax bill from 2007 and 2008. My parents have offered to pay the IRS directly for me to wipe this out, since it can't be wiped out in Ch 7. I want to file Ch 7 for large credit card debt. How will my parent's payment to the IRS be viewed in my bankruptcy if I have no plans to repay them?

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Attorney answers (3)

Lesley Abigail Hoenig

Reputation Level 14

Answered over 2 years ago. Bankruptcy Attorney in Mount Pleasant, MI.

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I think the key is to disclose this to your bankruptcy attorney, I do not think this should be a major problem, you just want to discuss this with your bankruptcy attorney and make sure it's properly described somewhere on your bankruptcy schedules. I do not think it should impair your bankruptcy, especially when you are not paying money to your parents prior to filing, but it is good to discuss this with your bankruptcy attorney.

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Joseph Michelotti

Reputation Level 10

Answered over 2 years ago. Bankruptcy Attorney in Oak Brook, IL.

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Yes you need to discuss this with your bankruptcy attorney. Probably the best strategy would be to file the bankruptcy first and deal with the IRS later.

I would be happy to discuss this with you by email

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Henry Repay

Reputation Level 15

Answered over 2 years ago. Bankruptcy Attorney in Belvidere, IL.

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I agree with the responses you have received. While it should not present a problem, if it is only going to amount to a few additional dollars in penalty, I would get the bankruptcy done first. The attorney filing your case should address this more carefully. There is too much at stake to move carelessly.

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