Chapt 7, Back taxes, payments, and statute of limitations

[debtprison]

But if you only make $12,000 per year, then you are a no brainer for non-collectable. I think you are overestimating the risks.

I might just be paranoid. I'm worried that if I do make more money they can suddenly decide that I need to pay them $300 a month (I called once and that's what they quoted me [unless I provided a detailed financial statement] for an installment agreement which I declined).

To complicate matters I am considering working another job (which happens to also be Cash and as an independent contractor) starting this month. If I do that I will earn an extra $1,000 per month but my other income will slowly go down a little so new total earnings per year will be about $20,000 per year (still not much but above poverty).

I also just realized that near $15,000 (10,000 original amount) in tax debt should be dropping off the SOL now from the 1999 tax year soon. I posted May 2010 in another forum but I just realized its actually May 2011 (filed August 2000 but then about six months added for the time during the C7 BK in 2003). If I do this the plan is to use the extra $ to pay down the student loans (about $20,000 there, I plan to pay down up to $600 a month if I get this extra job in order to eventually have no debt which is the end goal!) and moderately improve my quality of life from poverty.

So I guess that is another option. That will eliminate $15,000 right there that they cannot try to collect on save for from the lien. But it would still leave other debts so I will still probably have to do the C7 BK in 2011 assuming my income isn't higher by then.