Questions on a Chapter 7 and taxes

[limping805]

Hi All,

I have fought off filing chapter 7 for 1 year now and I feel I have no other choice than to proceed with the process.

I have had difficulty finding work, I was a mortgage person untill about 1.5 years ago. My current income meets the means test for a chapter 7, but I have a few questions and hopefully I can find some guidence?

First, I do not have the $2500 to file thru an attorney here in California and wanted to go to a "We the People" who can do all the forms and filing for
about $600 which I can handle. Has anyone else (I am sure there are) done this thru this service? my girlfriend has about 2 years ago and it worked for her but I have some back taxes issue that she did not have when she filed.
Does having taxes involved in a Chap7 BK require a attorney or is the IRS just another debitor in the courts eyes?

I have about 30+K in credit card debit and I am a renter and do not really own anything but furniture and a car that is about 6K upside down. I am planning to include the car, credit cards and taxes in chap 7, is this possible. I have kept everything up to date until about a month ago when things just got too tight and I was forced to choose between having a roof over my head or putting the cards and car on the back burner. I have not used my CC for about 6 months except for a gas card which I am still debating about including in the process but at 23% IR and a balance o $1500 I would like to include this card but do not want to send a red flag since it was last used about 1 month ago.

Second, my back taxes are about $33K and they are over 3 years old after filing except for $8K which was just assessed for 2005, I had filed an extension so I know that those cannot be included in BK since they are under the 3 year timeline, is there a way around this?
My question is, if I do a chapter 7 will they (IRS) continue with a "full court press" after it is discharged for the remaiding balance that cannot be included in this filing do to the timeline? Will the IRS allow me to make payment arrangements for the remainding balance or will they try to "squeeze" me for the full balance? What can be done if this is the case?

I know the information from this forum is to help with ideas and not legal advice, so any thoughts or additional questions would be greatly appreciated.

Thank you

[AngelinaCatHub]

Try this

Hi All,

I have fought off filing chapter 7 for 1 year now and I feel I have no other choice than to proceed with the process. Join the club of all of us.
I have had difficulty finding work, I was a mortgage person untill about 1.5 years ago. My current income meets the means test for a chapter 7, but I have a few questions and hopefully I can find some guidence?

First, I do not have the $2500 to file thru an attorney here in California and wanted to go to a "We the People" who can do all the forms and filing for
about $600 which I can handle. Has anyone else (I am sure there are) done this thru this service? my girlfriend has about 2 years ago and it worked for her but I have some back taxes issue that she did not have when she filed.
Does having taxes involved in a Chap7 BK require a attorney or is the IRS just another debitor in the courts eyes? I have no knowlege of that service, but for 17 bucks on Nolo.com you can purchase all you need to know about 7 and all forms in a pdf download. You are stuck with IRS taxes but will be stalled by an automatic stay.

I have about 30+K in credit card debit and I am a renter and do not really own anything but furniture and a car that is about 6K upside down. I am planning to include the car, credit cards and taxes in chap 7, is this possible. I have kept everything up to date until about a month ago when things just got too tight and I was forced to choose between having a roof over my head or putting the cards and car on the back burner. I have not used my CC for about 6 months except for a gas card which I am still debating about including in the process but at 23% IR and a balance o $1500 I would like to include this card but do not want to send a red flag since it was last used about 1 month ago. OK, you seem good for go with these acceptions. IRS gotya, and the gas card is too current. Pay it up if you can or stop using it for at least 90 days.

Second, my back taxes are about $33K and they are over 3 years old after filing except for $8K which was just assessed for 2005, I had filed an extension so I know that those cannot be included in BK since they are under the 3 year timeline, is there a way around this? Three years is good and may get you out of that year, but anything soomer, I believe you are stuck.My question is, if I do a chapter 7 will they (IRS) continue with a "full court press" after it is discharged for the remaiding balance that cannot be included in this filing do to the timeline? Will the IRS allow me to make payment arrangements for the remainding balance or will they try to "squeeze" me for the full balance? What can be done if this is the case? Well, I'm a pro at this, and yes they will threaten you, and yes they will bill you for every year, due now. My suggestion is get a good CPA or tax lawyer. Also, if you can get through a 'EEFFFFing' phone call, thou can get on a payment plan.

I know the information from this forum is to help with ideas and not legal advice, so any thoughts or additional questions would be greatly appreciated.

Thank you

I hope this will help a bit. 'Hub

[BK2008]

I believe, on your taxes, what you can't get discharged, you might do an IRS OIC (offer in compliance) to settle the amount of what you do owe.

Here's a little info from the IRS on that subject.

http://www.irs.gov/businesses/small/article/0,,id=104593,00.html

I wouldn't go through those 'agencies' that can settle your irs debts as seen on tv. Do it yourself, you have just as much chance of being successful as the yo-yo's advertising they can do it for some ungodly fee (% of the settlement amount, probably).

[biotechsolution]

with your taxes. you don't have to had filed 3 years ago. the date the taxes were due must be at least 3 years old. This time of the year extensions won't matter if you didn't file before Oct 15th. You should be able to file on any taxes up to and including 2005.
BUT...you must have filed the returns at least 2 years before filing your bankruptcy petition. AND the taxes must have been assessed for at 240 days.
All the above have to be met to get a discharge.

They will more than likely file a levy for the left over tax after discharge. So be proactive and try to set up an installment agreement before they file a tax lien.

In addition if you put any money in a sep or retirement account even though it's protected from creditors in a bk, it's not protected from the IRS.

[limping805]

Thank you for all who answered my questions!
I have another question on the IRS drama, can I still set up a payment plan for the 05 taxes. I have always filed at least by October 15th, never filed late. How does one advise the IRS that the other years are going to be included in my BK? Can I advise them that I only want to set up a plan for the 2005 taxes if they are not allowed? and when do I find out which taxes will be allowed in my filing?

I am also 30 days late on my car, when does this need to be turned in to the bank? Can I use it while I am in the process?
Thanks for your answers