[CLBS] Chapter 13 Plan

[Kathleen McCallister]

in your case there is sufficient equity in the real property such that the IRS is wholly secured.


K
-----Original Message-----
From: CLBS <clbs-bounces at admws.idaho.gov> On Behalf Of Alexandra Caval
Sent: Friday, November 22, 2019 11:44 AM
To: Joshua O'Hare <JOHare at foleyfreeman.com>
Cc: clbs at admws.idaho.gov
Subject: Re: [CLBS] Chapter 13 Plan

If the IRS is properly secured then you have to determine how much of the IRS's claim is secured by the value of the debtor's property (note, this is the value of the property before exemptions). You have to pay that secured amount with interest over the term of the plan to meet confirmation requirements; I think the interest is statutory but I always go off the interest number in the IRS's proof of claim. The only way you can pay them less than that is if they specifically agree to that treatment. So, if you're planning to do something creative then it'd be a good idea to call Bill Humphries and run it by him first; maybe even do a stipulation re plan treatment with him since he's going to end up in your case on behalf of the IRS. Without that, you're going to have a chapter 13 trustee arguing to the judge that you're plan isn't confirmable and/or feasible.

On Fri, Nov 22, 2019 at 11:19 AM Joshua O'Hare <JOHare at foleyfreeman.com>
wrote:

> Hello,
>
> I'm dealing with a Chapter 13 Plan. The debtors have a large secured, 
> non-priority claim from the IRS. How are these properly treated? Do 
> they have to be provided for by the plan or can there be interest-only 
> payments made in the plan, leaving the principal to be paid outside the plan?
>
> Thanks,
>
>
> Joshua M. O'Hare
> Attorney
> [cid:image001.png at 01D5A126.AC945890]
> 953 S. Industry Way
> Meridian, ID 83642
> Phone: 208-888-9111
> Fax: 208-888-5130
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-- 

Alexandra O. Caval

Caval Law Office, P.C.

P.O. Box 1716

Twin Falls, ID 83303-01716

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alex at cavallawoffice.com




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