Hi People,
I am here to try to nail down some info for my parents who have gotten into a pickle with back taxes and overwhleming debt. Will try to keep it concise-
Back taxes owed for tax years 2001-2005 (32,000)
Back taxes owed for tax year 2006 (5,000)
Taxes owed for tax year 2008 (9,300)
Unsecured credit debt of (30,000)
1 vehicle with balance owed (18,000)
Rent and have no home, no assets, no pension..etc. Father draws $1000 a mo. social security from semi-retirement. Annual adjusted income of $40,000
Filed Offer in Compromise in Feb. 2007 for taxes owed on tax years 2001-2005, offer was eventuallly denied and has been in appeal for over a year.
Income drastically reduced in last 12 months making this situation unworkable. Have never been late or missed debt payment other than tax situation. Older people (62 and 69) with small business going under. Took them a lot of trying and struggle before making bankruptcy decision.
Met for free consultation with attorney who scheduled meeting with paralegal to do Chap. 13 paperwork. I advised them to hold, get more info, see another attorney for other views.
Questions-
The 240 day rule on the offer in compromise is the time from assessment before a BK can be filed. So since the 240 days had passed prior to the filing of the OIC does that rule not apply?
Does the clock stop on the 3 year toll when the offer in compromise is filed?
Their income will drop into full retirement when they hang it up in 4 months and will be a monthly gross of $2000- should they file a 13 now, or stop paying bills and amass some capital for a chapter 7 with less income?
Any questions I should be asking that I am not here?
Thanks for any input. Trying to help them through this. If I left out pertinent info please let me know and I will supply it.
I am here to try to nail down some info for my parents who have gotten into a pickle with back taxes and overwhleming debt. Will try to keep it concise-
Back taxes owed for tax years 2001-2005 (32,000)
Back taxes owed for tax year 2006 (5,000)
Taxes owed for tax year 2008 (9,300)
Unsecured credit debt of (30,000)
1 vehicle with balance owed (18,000)
Rent and have no home, no assets, no pension..etc. Father draws $1000 a mo. social security from semi-retirement. Annual adjusted income of $40,000
Filed Offer in Compromise in Feb. 2007 for taxes owed on tax years 2001-2005, offer was eventuallly denied and has been in appeal for over a year.
Income drastically reduced in last 12 months making this situation unworkable. Have never been late or missed debt payment other than tax situation. Older people (62 and 69) with small business going under. Took them a lot of trying and struggle before making bankruptcy decision.
Met for free consultation with attorney who scheduled meeting with paralegal to do Chap. 13 paperwork. I advised them to hold, get more info, see another attorney for other views.
Questions-
The 240 day rule on the offer in compromise is the time from assessment before a BK can be filed. So since the 240 days had passed prior to the filing of the OIC does that rule not apply?
Does the clock stop on the 3 year toll when the offer in compromise is filed?
Their income will drop into full retirement when they hang it up in 4 months and will be a monthly gross of $2000- should they file a 13 now, or stop paying bills and amass some capital for a chapter 7 with less income?
Any questions I should be asking that I am not here?
Thanks for any input. Trying to help them through this. If I left out pertinent info please let me know and I will supply it.
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