So, the paperwork has been filed and if everything goes normally I'll have
my debts dismissed in a couple of weeks.

One debt that will not be dismissed of course is the $7000 I owe to the IRS
which I am paying off on installments of $400 a month.

Would iit not make more sense for me to get a loan to pay it off all at
once? I think the interest and penalty rates and whatever else I pay on
top of the basic debt to the IRS is going to be more than whatever
nosebleed rate I get from a private lending institution?

Plus, paying off the loan from said institution on a regular basis - would
that not help rebuild my credit rating? I know you're supposed to do that
by using credit cards but I'd REALLY like to avoid them for a little while.

Is my logic sound, or not?

On Sat, 17 Sep 2005 00:58:32 -0500, none@nothinaks.com (Ken Smith)
wrote:
So, the paperwork has been filed and if everything goes normally I'll havemy debts dismissed in a couple of weeks.One debt that will not be dismissed of course is the $7000 I owe to the IRSwhich I am paying off on installments of $400 a month.Would iit not make more sense for me to get a loan to pay it off all atonce? I think the interest and penalty rates and whatever else I pay ontop of the basic debt to the IRS is going to be more than whatevernosebleed rate I get from a private lending institution?Plus, paying off the loan from said institution on a regular basis - wouldthat not help rebuild my credit rating? I know you're supposed to do thatby using credit cards but I'd REALLY like to avoid them for a little while.Is my logic sound, or not?


Well, it does depend on what rate the IRS is giving you. A private
lending group might want collateral and the rate will possibly be as
high as 27%...

Is my logic sound, or not? Well, it does depend on what rate the IRS is giving you. A privatelending group might want collateral and the rate will possibly be ashigh as 27%...

27%? Wow, didn't think it would be quite THAT high. I believe when all is
said and done I'm at 19% with the IRS. If a private institution who
reported my good payment activity to the CB's could come pretty close I
guess I'd do it.

FOllow up question. I checked my score recently and even with the filing
of the bankruptcy on there it is still not the wreck I expected. It's in
the poor range but pretty high up, not too far from "fair". Is it going to
get worse after the 341 and discharge? Or does simply filing the papers
cause all the damage?

"Ken Smith" <none@nothinaks.com> wrote in message
news:96D3F45C4karlcsueduco@216.196.97.136... So, the paperwork has been filed and if everything goes normally I'll have my debts dismissed in a couple of weeks. One debt that will not be dismissed of course is the $7000 I owe to the IRS which I am paying off on installments of $400 a month. Would iit not make more sense for me to get a loan to pay it off all at once? I think the interest and penalty rates and whatever else I pay on top of the basic debt to the IRS is going to be more than whatever nosebleed rate I get from a private lending institution? Plus, paying off the loan from said institution on a regular basis - would that not help rebuild my credit rating? I know you're supposed to do that by using credit cards but I'd REALLY like to avoid them for a little while. Is my logic sound, or not?


Is there a reason you did not include your tax debt in the bankruptcy
filing?


Barry

Where did I say I didn't include it?
Is there a reason you did not include your tax debt in the bankruptcyfiling?Barry

On Sat, 17 Sep 2005 10:33:13 -0500, none@nothinaks.com (Ken Smith)
wrote:
Is my logic sound, or not? Well, it does depend on what rate the IRS is giving you. A privatelending group might want collateral and the rate will possibly be ashigh as 27%...27%? Wow, didn't think it would be quite THAT high. I believe when all issaid and done I'm at 19% with the IRS. If a private institution whoreported my good payment activity to the CB's could come pretty close Iguess I'd do it.

Well, you could check, but the amount is in a area of which they'd
possibly nail you to the cross for payments.FOllow up question. I checked my score recently and even with the filingof the bankruptcy on there it is still not the wreck I expected. It's inthe poor range but pretty high up, not too far from "fair". Is it going toget worse after the 341 and discharge? Or does simply filing the paperscause all the damage?


The damage comes after the case is "Discharged" and that's when the
score goes south....But take heart..I read a board which is VERY
helpful to the upcoming and afterward BK filer...

http://www.bankruptcyforum.com/

Ken Smith" <NONE@NO.COM> wrote in message
news:96D590F77karlcsueduco@216.196.97.136...
Where did I say I didn't include it?Is there a reason you did not include your tax debt in the bankruptcyfiling?Barry


Well, you sound like you're under the impression that you still have to pay
off your tax debt. If you included it in your bankruptcy, why is that still
an issue?


Barry

On Mon, 19 Sep 2005 10:13:20 GMT, "Barry"
<Barry@noneofyourbeeswax.com> wrote:
Ken Smith" <NONE@NO.COM> wrote in messagenews:96D590F77karlcsueduco@216.196.97.136.. . Where did I say I didn't include it?Is there a reason you did not include your tax debt in the bankruptcyfiling?BarryWell, you sound like you're under the impression that you still have to payoff your tax debt. If you included it in your bankruptcy, why is that stillan issue?

Unless you can show that paying those taxes would be an unbearable
burden, the courts cannot nor will not release you from those debts.

On Mon, 19 Sep 2005 10:13:20 GMT, Barry <Barry@noneofyourbeeswax.com> wrote:
: Well, you sound like you're under the impression that you still have to pay
: off your tax debt. If you included it in your bankruptcy, why is that still
: an issue?

Many debtors seem to be under the impression they can pick and choose
the creditors they'd like to list, but it doesn't work that way.
_All_ creditors *must* be listed and _all_ debts scheduled. I think
one needs to assume the debt was included because disclosing all debts
is a clear code requirement, under penalty of dismissal...

Perhaps the next question is why is he still paying? And the answer to
that suggests he believes the IRS debt is not dischargeable, which in
turn depends on (one or a series of) timing (questions), type of tax,
bankruptcy chapter, presence of tax liens, unfiled returns or
fraud/evasion issues hanging around, etc etc etc.

(And the etcs are pretty important so hopefully the OP has competent
bankruptcy counsel)

--
Florida Bankrupty FAQ (pre BARF, alas)
http://www.goldstein-pa.com/brFAQ.html

Yes. The tax debt was listed. No, I do not qualify to have it discharged
according to my attorney when looking at my individual circumstance. It's
rather a complex area, if I understand properly.

hg@queue.to (Howard Goldstein) wrote in <1127130983.62431@news.queue.to>:
On Mon, 19 Sep 2005 10:13:20 GMT, Barry <Barry@noneofyourbeeswax.com>wrote: : Well, you sound like you're under the impression that you still have : to pay off your tax debt. If you included it in your bankruptcy, why : is that still an issue?Many debtors seem to be under the impression they can pick and choosethe creditors they'd like to list, but it doesn't work that way._All_ creditors *must* be listed and _all_ debts scheduled. I thinkone needs to assume the debt was included because disclosing all debtsis a clear code requirement, under penalty of dismissal...Perhaps the next question is why is he still paying? And the answer tothat suggests he believes the IRS debt is not dischargeable, which inturn depends on (one or a series of) timing (questions), type of tax,bankruptcy chapter, presence of tax liens, unfiled returns orfraud/evasion issues hanging around, etc etc etc.(And the etcs are pretty important so hopefully the OP has competentbankruptcy counsel)