Advice Ch. 7

[MMBK]

Ok, need advice.

Running out of money, have a huge tax bill I can't pay, and I don't have many assets (actually almost none). There is no way I can possibly pay the tax bill, it's over 2 years since the last year from assessment. Unemployed now for awhile. Running out of cash. No other huge debts other than the tax bill. I have a 10 year old truck(Ford Explorer) that according to BB is between $1-2k, all other possessions are like personal, a computer, clothing, household items, etc.

Questions.
- Can I write the tax bill off in full, interest, late-penalties, etc.?
- Can I keep an old truck that is only worth $1-2k?
- I don't plan on writing off one CC, it has a very low balance, will the company allow me to keep that account open if they are not a listed creditor?
- Anything else I need to know?

I am currently in Indiana.

[lrprn]

Questions.
- Can I write the tax bill off in full, interest, late-penalties, etc.?

Your taxes *might* be dischargeable in bankruptcy if you can say yes to each of the following five statements:
- The due date for filing a tax return is at least three years ago.
- The tax return was filed at least two years ago.
- The tax assessment is at least 240 days old.
- The tax return was not fraudulent.
- The taxpayer is not guilty of tax evasion

If you say 'no' to any one of these, then the answer is no, the taxes cannot be discharged in bankruptcy.

- Can I keep an old truck that is only worth $1-2k?

Very likely - check your Indiana exemptions at http://www.thebankruptcysite.org/exe...s/indiana.html

- I don't plan on writing off one CC, it has a very low balance, will the company allow me to keep that account open if they are not a listed creditor?

Sorry - bankruptcy doesn't work that way. You must list ALL of your debts - that means listing all of your credit cards if they have a balance.

If the credit card doesn't have a balance, you don't have to list it. However, it's very likely the creditor will cancel the card anyway. The major cc companies share information among each other - your credit card holder will find out you filed even if you don't list it.

- Anything else I need to know?

Keep reading the forum and go to these reliable bankruptcy sites online to find out more about how Ch 7 and Ch 13 bankruptcy work:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

Then make appointments for free or low-cost consultations with 3-4 bankruptcy lawyers in your area. You will find out what to expect and where any potential problem areas may be if you do decide to file. There's no obligation.

Hope this helps. Keep us posted on what you find out and post any questions - we'll help you sort things out as best we can.