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Procrutes assaulting his guest upon the bed

Good income, substantial priority tax debt, other debt within the limits:  sounds like a Chapter 13 bankruptcy, doesn't it? Yet the clients were in my office for a second opinion, convinced they couldn't sustain over five years the payments their attorney provided in their Chapter 13 plan. Their attorney's approach reminded me of the Greek story of the brigand Procrustes, who waylaid travelers, offered them the "hospitality" of his home, then racked them (or lopped off limbs) to fit his bed. These people were going to fit in 13, in their attorney's view, despite their protests it wouldn't work. They told me of medical expenses omitted from the budget, surgery planned for the near term, and fewer employment hours on the horizon.  The payments, a stretch at this point, would be unsustainable soon in the future. My thought:  do they need a discharge of the tax debt?  is there an administrative remedy within the IRS that would protect them? Yes, said the enrolled agent I … [Continue reading...]