IRS problem

What is the name of your state?California
I have a dilemma with the IRS and the state of California

I am currently in a chapter 13 but the only thing left is IRS and California taxes of approx. $11,000. I can convert the rest of the debt (unsecured debt) to a chapter 7 and deal with the taxes out side of the bankruptcy, by going to a tax debt assistance firm.

To continue with the bankruptcy I will need to pay a fee of $250 plus bring the payments of $504.00 a month current ($2700.00), and continue at 504.00 a month for 18 more months or outside of bankruptcy pay a $1200.00 fee up front plus approx $4000.00 over a period of time. I am not sure which way to go, how reliable the debit assistance firms are.

Any advice????

[abezon]

What are you talking about? Who wants $250? Who wants $1200? Where did you get the $504 figure? If all your debts except the IRS & CA taxes will be discharged in BK, you don't need a debt assistance firm. Deal with the agencies yourself. For the IRS, do not enter into an installment agreement -- you pay $48 & it's completely inflexible. Instead, just send them money any time they send you a demand letter. CA may require a payment schedule; talk to a tax pro in CA about dealing with the FTB. They're much nastier than the IRS.