How are back taxes repaid through Ch. 7?

[JRScott]

Was the business a joint venture. If he hid liens and stuff that he took out if it was a joint venture during the divorce proceedings it is possible he is liable for some or all of the debt. You might call up your divorce attorney and check on that if you haven't already.

You can't discharge taxes that are newer than 3 years old though in a Chapter 7.

You are probably looking at an expensive lawyer, however it looks like it would still be much less than what is currently owed.

[freshstart06]

IN our situation. We were able to discharge taxes for 2000-2003 but we still had to pay taxes for 2004-2006. We made payment arrangements of $400 a month but we are currently submitting a form to reduce the payments to around $250 a month. Filing Chpt 7 helped us because it rid us of all the debt and medical expense which enable us to afford to make the tax payments. Once I heal and can get back to work at least part time my income can go towards paying off the taxes especially since I am commisssion only my checks are usually big lump sums, not too big but it helps.

[southernbelle]

The business was a sole-proprietorship and everything was in my name. Keep in mind I started the business before he even got involved. Hindsight, I think he got involved because it was his chance to work less and pretend to be an entrepreneur. If I were smarter, I would have left him a long time ago becuase our marriage had been over for years.

I think he knew that I was being held responsible for everything and took advantage. I spoke to the divorce atty and she told me that because of how the business was set up, there's not really a lot I can do. I can try to sue him for monies he owes me, but he is low enough to quit his job as a car salesman and move in with his enabling mom just to show he has no income. I think my objective now is to get the BK behind me, pay the tax debt and move on.

The fact that my ex has completely ignored creditors when they have tried to contact him and refuse to acknowledge the fact that the debt exists makes me MAD!! If I am able to file Ch. 7, I will gladly pay the back taxes (even if it takes years) knowing that the creditors will go after him more aggressively for some of the debts he co-signed on because right now, he has a new apt. and a new job and is living the life of riley. They've been after me because I am an easier target and I have integrity, but I've reached the end of my rope. I'm glad I go to church because people like that make you think bad thoughts.

I am in the process of finding a lawyer that does more than just consumer debt and has some experience in non-consumer as well. I think I have a couple picked out, but the one that is better (on her resume) is not very personable, and I really hit it off with the other atty. I need to look at their fees again because this situation has tapped me out. I was attempting to pay business debts from my regular paycheck, but stopped paying or answering my phone as of the beginning of this month. What's the worse they can do to me, sue? Hopefully by then, I will be well within my Ch. 7 proceedings. I am focusing on keeping personal debt current so that it's not a huge hit to my credit later.

[Boscoe]

Is there a divorce in the works as well? Might make a difference where you go for legal representation.

[southernbelle]

Yes. I filed the divorce paperwork in June 07 and in Louisiana after 180 days it can become finalized. I have LOTS of irons in the fire right now. I don't think it can get any worse. With the divorce, BK, tax headaches, no money, and my central A/C dying during 100 degree heat, I think I'm loosing my mind.

Since I have to wait another 2 months anyway before filing because of the loans, I will take that time to meet with as many lawyers as possible. I am keeping in close contact with my "charge for everything" divorce lawyer so that I can make her aware of what is going on so that I don't do something that will come back later to bite me in the toosh with my ex. One of the attorneys I met with did mention that I could list my ex as a creditor in a Ch. 13 although I had a prenump to protect my house just in case he decided that he was entitled to some of the property liquidated when I closed the business. I had to sell some of the equipment to another business owner so that they would pay off the leases because I didn't have the $6k to pay it off, I abandoned some of it and have a minor amount in storage. I wonder if I could still list him in a Ch. 7? Any thoughts? Thanks again. I think I need valium!!!!

[Boscoe]

Find yourself a good bk attorney who understands your situation fully and will take you on as a client.......do it as soon as you can!

[JRScott]

Yes I would list your ex husband on the bankruptcy petition. He seems shady enough that you probably need the extra protection. And if he is listed as owing you money the Trustee will investigate him, and if he ignores the Trustee that won't be too good for him.

If the house and business where just in your name. How did he place liens on them without your knowledge? Seems to me that that would be fraud....but then I'm not sure .

[southernbelle]

[Minnymouth]

You said your ex was "very interested" in getting possession of the business computer....... with all the records on it....

Personally, I would have someone "check out" that computer and "see" what his real interest is - in getting it in his possession...

You may have more things going on then you realize.....

Just a thought,

[southernbelle]

I never thought about that. I would definitely take it in to let someone look at it. I just thought he wanted it because it is fairly new (it’s a Mac mini), portable and he could sell it. I would be very interested to find out exactly what he was really after.

[Minnymouth]

He may be trying to "hide" business information from you, etc OR he may be "indulging" in other "activities", he doesn't want anyone to know about.......

Might be worth checking it out..... you never know.....

Besides if the business is in your name only...... he has no use or reason to want information concerning the business..... You may need that info in the future for taxes, etc.....

Keep us posted

[JRScott]

I'm with Minnie, it might be time to comb over that computer. See what might be on it. Perhaps there's something you can use there......

I hope so

[southernbelle]

I hope so too. So far I've only used it for payroll, etc, but there might be something he's trying to hide.

[JRScott]

Yes there might be a smoking gun in that computer. I hope you find it if there is, cause this guy sounds pretty bad

[southernbelle]

You don't know the half of it.