New here. First Post~ HELP

[passiongirl]

Hi~

I just found this forum while searching for BK info. I am meeting with an attorney on Thursday afternoon to speak about Chapter 13. I'll give a brief synopsis of my situation and if anyone can shed any light or guidance I would greatly appreciate it.

I owed back taxes from 2004/2005 (and now 2006) and was on a repayment plan with the IRS. I missed a payment and then didn't file timely my return for 2006....apparently I signed a paper when I did the installment agreement that said I would file on time and an extension is NOT a timely filing (I later found out the hard way) I have been under wage garnishment since July. They (the lovely IRS) are allowing my employer to pay me $168.27 per week. My employer has been sending them $319.84 per week.

Fast forward to today...I own a house has 2 mortgages on it. I co-own a 2nd house that has one mortgage on it. I rent a 3rd house because I can't afford to live in the first one which is NORMALLY rented out but is currently vacant. The 2nd house that is co-owned is currently leased. I have a car payment as well. I have numerous old credit cards that are either in collections or charged off at this point. I have been widowed for 4 years and let my nice credit score tank to just over 400. I am now 90 days or more past due on all things EXCEPT the co-owned property. I am alsoway behind on property taxes. Before the filing of my 2007 taxes I estimate that the prinicpal balance due to the IRS is around $20,000.00. It will go up again a bit more after filing at the end of this year. My salary is just over $31,000.00 per year. Ok, here are the questions!

1. Will the Chapter 13 stop the IRS wage garnishment? 2. How will this affect the co-owner of the property? 3. What exactly happens with filing Chapter 13? 4.) In addition to my salary I get a small pension from my deceased husband's former employer...will they include that amount as income as well?

In conclusion, I thank you all in advance for any assistance you can offer. This is a scary road and I should have filed before I've just been frozen not knowing what to do. Now that it looks like I could lose it all, well I'm here.

Please help! Thanks again~

Passiongirl

[Flamingo]

Hi~

I just found this forum while searching for BK info. I am meeting with an attorney on Thursday afternoon to speak about Chapter 13. I'll give a brief synopsis of my situation and if anyone can shed any light or guidance I would greatly appreciate it.

I owed back taxes from 2004/2005 (and now 2006) and was on a repayment plan with the IRS. I missed a payment and then didn't file timely my return for 2006....apparently I signed a paper when I did the installment agreement that said I would file on time and an extension is NOT a timely filing (I later found out the hard way) I have been under wage garnishment since July. They (the lovely IRS) are allowing my employer to pay me $168.27 per week. My employer has been sending them $319.84 per week.

Fast forward to today...I own a house has 2 mortgages on it. I co-own a 2nd house that has one mortgage on it. I rent a 3rd house because I can't afford to live in the first one which is NORMALLY rented out but is currently vacant. The 2nd house that is co-owned is currently leased. I have a car payment as well. I have numerous old credit cards that are either in collections or charged off at this point. I have been widowed for 4 years and let my nice credit score tank to just over 400. I am now 90 days or more past due on all things EXCEPT the co-owned property. I am alsoway behind on property taxes. Before the filing of my 2007 taxes I estimate that the prinicpal balance due to the IRS is around $20,000.00. It will go up again a bit more after filing at the end of this year. My salary is just over $31,000.00 per year. Ok, here are the questions!

1. Will the Chapter 13 stop the IRS wage garnishment? 2. How will this affect the co-owner of the property? 3. What exactly happens with filing Chapter 13? 4.) In addition to my salary I get a small pension from my deceased husband's former employer...will they include that amount as income as well?

In conclusion, I thank you all in advance for any assistance you can offer. This is a scary road and I should have filed before I've just been frozen not knowing what to do. Now that it looks like I could lose it all, well I'm here.

Please help! Thanks again~

Passiongirl

Since you have multiple major issues, I highly suggest you contact a BK lawyer; many, if not all, give free initial consultations - I would call one and make an appointmente to find out exactly where you stand as to some of your major points. Take with you to that appointment a complete list of all your debts, monthly payments, listing of assets, paystubs and sources of any other income (yes, including that pension), and a copy of your most recent tax return. Your situation is a bit complicated and seeing an attorney as quickly as possible with give you a bit more insight as to what you can or cannot do. Best of luck to you!

[rrockinggramma]

Yes filing will stop the garnishment of the IRS. However you will have to pay back all 20,000 to them during the course of your plan. You didn't state your income so not sure where you stand with that. A chapter 13 will help you to protect your assets and a good attorney will help you see what you can keep and what you can give up. As to the co owned property, the co debtor is protected from creditors calls once you file but after your discharge, he/she would be fair game if there is any deficiency balances owed etc. If you maintain the property payments while in the plan, then there should not be any issues concerning it. Another thought for you to consider is if the IRS is the reason you are filing, perhaps you could get a tax attorney to settle the debt with them?? An offer in compromise? Others may know more about that. GL to you

[Bandit]

I am now 90 days or more past due on all things EXCEPT the co-owned property.

I wonder if you can qualify for a Ch7? That is really the only way I can see you getting rid of the entire tax problem (or most of it), if you meet all the criteria for taxes in a BK. It sounds like you filed all those years so that is a good thing.
Maybe that way you can keep the house you are co-owner with? & dump all the extra baggage?

More information is needed before anyone can say much, like your state, total other expenses.

I missed a payment and then didn't file timely my return for 2006....apparently I signed a paper when I did the installment agreement that said I would file on time and an extension is NOT a timely filing (I later found out the hard way)

I don't understand why asking for an extension is still not a timely filing? Did they grant the extension?

Now that it looks like I could lose it all, well I'm here.

Well, if it were me, I would be willing to lose everything to get all those complicated problems of my back. You still might be able to keep some things like the house you are co owner with, but if you can't make the payments on all the other stuff (secured debt), I don't see how you can get a Ch13.


I feel you may have more options than you think, depending on the whole picture & yes, there are people here who can help guide you in the right direction. More information is needed before anyone can really tackle your 3 main questions.

Have a look at the FAQ section & some of the books for starters. I would not hire the first attorney you interview. See several & you can always go back to the first one if that is one you feel can help you the best.

[passiongirl]

Thank you all for the replys!

Ok, I read for hours last night on various websites and I have a bit more understanding now of all the in's and out's now that I am facing this instead of ignoring it. More info~ to answer ya'll's questions.

I am in Texas. I have an appointment with a chapter 13 specialist attorney tomorrow. I found a couple of tax attorneys online last night that I will contact today. The IRS has had me so frightened and frozen I haven't done anything for all these months and now I'm to the end...you know, you keep thinking this has got to work out and then it doesn't.

In my reading it appears that if I file bankruptcy either way I can't do an offer in compromise with the IRS. I can't do an offer in compromise on my own and I can't pay to have it done because they are only allowing me $168.27 per week to live on which is why I am 90+ days behind on everything.

The three houses scenario. House # 1 has alot of equity in it. I have been out of it for almost 2 years. Had it on the market to sell and it wasn't moving so I leased it out for a year to make the payments. This went well until the lease was up and the IRS hit me at the same time. The house has been vacant and back on the market for months with no offers of buyers or renters. I will hit 120 days past due this month with no forseeable ability tro get caught up. House # is next to house # 1 and I bought it with a friend as an investment and for a rental. It has very little equity if any in it. House # 3 is a house I rent. I'm behind on that too. I don't know which to do first and which one to do!

Chapter 7? Chapter 13? or OIC and then BK?

In the end - I want to keep houses 1, 2 & 3 but I don't know if I can. I don't mind paying the IRS what I owed them originally but come on, the Penalties and Interest are killing me and the wage garnishment. How is anybody supposed to live off that amount???? The bank will only go another week or 2 and then it's trouble time. Please keep the guidance coming.

[Bandit]

I am in Texas.

Well then, you are in land of milk & honey when it comes to BK & the homestead, at least for one home & other good exemptions.

If you think you are looking at trouble as in foreclosures from being behind on those mortgages, there is such a thing as emergency filings you could check into. That is if you really want all those houses.

It sounds like the tax problem is what is really binding you?
Maybe sell a house to the IRS? (just kidding) cause they could end up with a lien on it anyway if you did sell one (because of back tax), no matter how much equity-in BK the equity does not help a lot unless you can afford the payments all the way to the end.

BUT! TEXAS does help a lot