Couple years ago I had a great corporate job. I was making about 44-50k per year. Today I’m making about half of what I was making before. I have over 28k in unsecured debt and over 12k owed to the IRS. I have been told, but not sure if it’s true, that I could file chapter 7 bankruptcy for both. In my conversation with this person he said if the taxes were filed over three years ago then they may, in some cases, be included in to a bankruptcy. If anyone can help with this I would greatly appreciate it.
2007-03-07 05:13:22 · 4 answers · asked by gaguyinca 1 in Business & Finance ➔ Taxes ➔ United States
You seem to be eligible for chapter 7. You would file chapter 7 if you made less than the median income and you did not have any property in which you had equity which you wanted to protect.
Income taxes which are more than three years old for which you filed income tax returns more than three years ago are dischargeable. Taxes due on account of others, such as trust fund portion of withholding taxes on employee wages or sales taxes are never dischargeable. It's more complex than that according to the law but this is a reasonable lay person's explanation.
Check resources at my website:
http://www.bankruptcy.lakelaw.com for more information
2007-03-07 11:28:22 · answer #1 · answered by DLeibowitz 5 · 0⤊ 0⤋
Federal income taxes which are more than 3 years old are dischargeable in bankruptcy. In order to qualify the tax must have been assessed more than 3 years ago so if you did not file a return for, say, 2002 then the tax could not have been assessed and it would not be dischargeable. Other than that you should have no problem. If you need further info ask again.
2007-03-07 13:38:20 · answer #2 · answered by woodluvto 2 · 0⤊ 0⤋
Debts due to Federal & State agencies are NOT dischargeable in Bankruptcy (Taxes, Student Loans).
You seem like you are qualified to have your unsecured debt discharged which will help you out. Also during the time the !st Notice is sent all creditors back off until the Discharge is sent so you might have 6-8 months to gather together your finaces to make a firm monthly repayment schedule to pay your taxes.
2007-03-07 13:24:04 · answer #3 · answered by Ronatnyu 7 · 0⤊ 1⤋
you need to call and talk with a bankruptcy lawyer, we filed two years ago and our credit immediately improved (sad but true)
but when we filed we could not add one of my husbands traffic tickets under the bankruptcy they said nothing owed to the government qualified for bankruptcy, i do not believe that IRS is an option either as half the country would claim bankruptcy to avoid the IRS, but its still worth calling a lawyer about.
2007-03-07 13:28:40 · answer #4 · answered by Blessed Rain 5 · 0⤊ 1⤋