I have a client who if I put in a chapter 7 could discharge his entire tax obligation of $200,000. However he has about $90,000.00 in unexempt equity in his house. You don’t have to pay them the whole $90k, unless they have a lien it’s based on what they would get in a hypothetical Chapter 7. Calculate cost of sale and Ch. 7 commission, and what’s left in unexempt equity can go into your plan.
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