On Payment Plan With the IRS but Can’t Afford My Other Debts. – Thomas

“Dear Steve,

About a 5 months ago I went on a payment plan with the IRS for past due taxes of 5 years. 34000 – $578 monthly. After I went through my finances with IRS $578 is what I have left after all my living expenses. IRS dose not include Charge cards Payments as expenses which is the $578 I have to pay top IRS. They left me with no money to pay my charge cards. I’m currant on my charge cards up to now ,but I wont be able to make any more payments. I owe about $20.000 in charge cards

What are my alternatives . Can I go Bankrupt, and how much will it cost. Thank you for your time Tom


Dear Thomas,

The IRS comes first, everything else last. Many people in similar situations find it necessary to file bankruptcy to discharge the rest of their debt so they can make the IRS payments.

I would suggest you find a local bankruptcy attorney. You’ll have to ask the attorney how much they charge. It varies by region.

You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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