In the Pierrotti v. IRS case, decided by the Fifth Circuit earlier this year, the Court affirmed that a Chapter 13 Debtor could not pay off an IRS lien over more than the length of his plan (which at most can be 60 months).
The code provision allowing payment beyond the plan term is for long term debts, such as home mortgages, whose original payment terms set a final payment date after the end of a Chapter 13 plan's term.
Lee Norton Bain, Attorney at Law, has been practicing in Georgetown since 1980.
