My Bankruptcy Attorney Says My Chapter 13 Payment Can’t Be Lowered. – Joseph

“Dear Mitch,

Currently In Chapt 13 status. The entire debt is 941 from a business that went under.

My chapter 13 pay out is 50% of my salary. After I make my car payment and insurance and gas, I have less then $500 a month for food, rent utilities clothing etc. How in the world am I supposed to live? I can not find a place to live in my town less then $600 per month before utilities. My attorney says there are no options to lower my payment because it is tax debt.


Dear Joseph,

I do not know your entire situation, so I cannot give you that second opinion you are looking for. I can tell you that some taxes, like the part of the payroll taxes that you withhold from employees, are considered trust taxes. They are owed personally and are not subject to a discharge. Some times, you negotiate with the IRS to pay less during the term of the plan and the rest will have to be paid after the end. It is possible that you are in a 100% plan for these taxes and it is required in your situation. If so, there may be nothing you can do except get another job until the debt is paid.

Mitchell Goldstein is an attorney licensed in Virginia. His practice focus is consumer bankruptcy, mortgage and debt defense and technology issues. He is a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA) and National Association of Consumer Attorneys (NACA). His goal is to educate people with solid advice and give guidance to consumers to help them made decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.