Chapter 13 Saves the Day...
Jan 01, 2011OUTCOME: Client Kept home
A client came to my office and was about to lose his house in foreclosure, he had not paid his mortgage payment in 14 months. The solution was to file Chapter 13 and pay his mortgage arrearages ba ... ck through the plan over 60 months. To prepare the petition I asked my client for his check stubs and tax returns. He informed me he had not filed either his personal or corporate tax returns for the last 10 years. We had to have the tax returns for the petition and also to determine the amount of taxes he would have to pay as part of his Chapter 13. The foreclosure was looming. My office prepared 10 corporate tax returns, 10 personal tax returns. We drove the returns over to the local IRS office to be processed. Then we prepared and filed his Chapter 13 petition. In less than two weeks my office prepared 20 tax returns for my client and filed his Chapter 13 petition. We stopped the foreclosure, brought him into compliance with the IRS. Paid back his taxes with no interest through the Chapter 13. Helped him do a loan modification, and later incorporated his business to facilitate payment and reduction of his taxes.
