33 The brand new Chapter thirteen fee period was 3 years, otherwise five years in the event your newest monthly earnings of the borrower plus the debtor’s partner is not lower than brand new relevant condition average income. Brand new Section 13 package payment months may be lower than three otherwise five years, “but only if the master plan offers up payment in full away from most of the greet unsecured claims more than a shorter months” (11 U.S.C. §1325(b)(4)).

forty During the re Graham, 63 B.Roentgen. 95 ( E.D. Pa. 1986); along with re Thread, thirty-six B.R. forty-two ( E.D.Letter.C. 1984).

41 When you look at the re also Edwards, 207 B.R. 728 ( N.D. Fla. 1997); look for as well as Resnick and you may Sommer, Collier for the Case of bankruptcy, within ¶[a].

forty five 11 U.S.C. §1328. Look for generally Resnick and you will Sommer, Collier to your site here Bankruptcy, within ¶TX1.08. To begin with, a debtor whom complete a part 13 installment plan you will shed all of the financial obligation except a lot of time-identity loans, alimony, and you may son support (Ray, “S.540: The newest Passing of your Section thirteen Super Launch?” 13-5 American Bankruptcy proceeding Institute Log 16 (June 1994)). S.C. §523(a)(8)), drunken riding expense (11 U.S.C. §523(a)(9)), and you may moneys owed having restitution and you will criminal fees and penalties (11 U.S.C. §1328(a)(3)) joining the newest roster out-of nondischargeable financial obligation. Until the BAPCPA try passed, Chapter thirteen offered better debt settlement than a chapter eight liquidation (Mather and you will Weisman, BNA Income tax Government You.S. Money Portfolios 638-3d, Federal Tax Range Process-Defensive Methods, IX:C:1:d (2010)). Such as for example, it had been possible to avoid expense arising from fraud courtesy a beneficial profitable private payment package (11 You.S.C. §523(a)(2)(A)).

See basically eleven You

47 eleven You.S.C. §507(a)(8)(A)(i). Getting a broad discussion out of concern tax claims, find Salzman and Hibschweiler, “Time Factors away from Discharging Taxes inside a chapter eight Personal bankruptcy,” 43 This new Income tax Agent 104 (). Look for in addition to Federal Judiciary, “Personal Personal debt Variations.”

fifty Salzman and Hibschweiler, “Time Considerations out of Discharging Fees in the a part eight Case of bankruptcy,” at p. 109. The newest 240-go out period are tolled because of specific occurrences, including a deal within the compromise. eleven You.S.C. §507(a)(8)(A)(iii).

53 In lso are Ferguson, 134 B.R. 689 ( S.D. Fla. 1991). Come across and Effectively Representing The client Till the Irs, on 21.1.step 3.2.

56 Resnick and Sommer, Collier towards Bankruptcy in the ¶TX4.04. See Salzman and you will Hibschweiler, “Timing Considerations from Discharging Taxation within the a part seven Bankruptcy,” during the p. 106, for much more into the notices off government taxation liens. Observe that federal income tax liens is susceptible to challenge since choice not as much as eleven You.S.C. §547.

58 Jenks, “The latest Case of bankruptcy Abuse Avoidance and you may Individual Protection Operate off 2005: Sum. L.J. 893 (Fall 2005) 902–03. The newest filing away from a federal tax lien may have most other bad consequences, specifically you to definitely assets which can be if not exempt, definition assets a debtor manage be prepared to keep, are subject to collection in which a notice from government taxation lien might have been validly recorded (eleven You.S.C. §522(c)(2)(B)). Because of this if the Grams holds an IRA, the fresh new Irs you are going to levy for the account shortly after her discharge when you look at the bankruptcy (Iannone, 122 T.C. 287 (2004)). Note there is certainly certain matter as to whether the exception conditions of Bankruptcy proceeding Code affect Chapter 13 circumstances (9A Was. Jur. 2d Personal bankruptcy §1395).

Bankr

59 Note that taxation liens should be removed from inside the Section 13 times, definition brand new lien shall be eliminated towards the amount the newest taxation allege exceeds the value of the house that the brand new lien attaches. So it rule cannot affect a good lien to the real-estate that is the debtor’s dominant residence. Resnick and you will Sommer, Collier to the Bankruptcy proceeding at the ¶TX4.04[c][ii].

60 United Coupons Ass’n out-of Tex. v. Timbers away from Inwood Tree Assoc., Ltd., 484 U.S. 365 (1988). Remember that if for example the collateral’s value appreciates following bankruptcy proceeding filing, you to definitely upcoming would contain the payment out-of postpetition focus (Resnick and you will Sommer, Collier for the Bankruptcy proceeding at the ¶TX4.05).