Big fat mess!

[ladydewinter]

You all seem like a bright bunch of people on here, and I'll go ahead and ask my questions. My husband and I are in the process of chapter 7. 341 was on 8/15, PACER says we are MEANSNO and are awaiting discharge. Here is where the issues start.

My husband has not filed taxes for years 04-09. I have. At the 341 mtng, the trustee asked about the unfiled taxes and we said they have been prepared and are ready to be sent out. He asked as to why they hadn't been filed and my husband replied that he had a small business and didn't profit to pay them and he really wasn't sure about how to handle all that he owes (around 18k). The trustee didn't ask anything else, he said "I have nothing that I'll need from you in assets and I don't see anything else that needs attention".
So now I've seen that if taxes are not filed we can get a dismissal. Ach! What do we do?
Another issue is that I had left my attorney a message pre-341 mtng about the taxes and come to find out he had some sort of heart attack on the east coast (I am in Colorado), so a substitute lawyer would be representing us. The sub lawyer was late for our explanations right before the 341, and I had to fill out the paperwork while he was with the trustee and his 3 other clients! This lawyer said after our 341 to talk to a tax attorney before sending in the late taxes. I've tried recently to contact our original lawyer (who should be back all healed by now), but he won't return my calls. Now we are in a big pickle. What do you all think? Dismissal? Totally screwed?
We are past the magic 60 days, but I'm still not sure now.

[dumpinmydebt]

I can't really give advice about the taxes except to listen to your current bk lawyer who said to contact a tax attorney.

Also, you should really leave your original lawyer alone. As someone who has witnessed people have heart attacks and watched cpr and codes being performed on them, you really don't know his health and how long the healing process from a heart attack is. Some people recover quickly while others don't. It is actually kind of rude to be contacting him knowing he had a heart attack and knowing you have technically a new lawyer.

[ladydewinter]

The only problem is that with this "substitute" lawyer I was not given any information, phone number, or anything. I found out through an email from the paralegal that he would be at our 341. All that aside....I just want to hear opinions of members here as to what they think might happen with this whole darn tax situation.

[tcreegan]

Hi ladydewinter, fellow Coloradoan here...

You're not in a big pickle...maybe just some relish...

Technically the lack of last years tax return can cause dismissal, but the trustee would be the one doing the dismissing and they didn't seem too interested. Is there a trustees report on PACER saying no distribution or some sort of handwashing that they are done? If there is, you are home free...do a happy dance. If not, I would give it some more time, check the timeline on my sig, definitely not right on 60 days. Then get the contact info for the substitute attorney from the paralegal and have them contact the trustees office, explain the reason for the confusion, and ask if the trustee needs any more documents.

If hubbys back taxes are from the 2004 era, I think they can be discharged in a Ch 7 Did you include them in the BK?

In the meantime, why not prepare a 2009 return? If hubby is hiding from the IRS, might be a good time to face the music.....

Tom in Colo (plains just off front range, been windy all day, ugh!)


ps: I know you bristled at dump bristling at you for your expectation on the lawyer w/ the heart attack....but as a heart patient myself, maybe send a get-well card? Having the ticker go down halfway across the country is got to be tough.

[ladydewinter]

Hey there! Thanks for answering!
* We did get a No Distribution on 9/16, the day after our 341. The only other thing it says is on 10/4 the Trustee Statutory Fees were paid. Not sure if that's a sign for anything!
*We did not include the taxes in the bankruptcy because we could not get ahold of our lawyer! Ach! Taxes are a scary thing sometimes!
We are in talks with an attorney specializing in IRS tax issues, so we are on the way to getting over this broohaha!

*As far as what our paralegal said, it was a minor heart attack from a clogged artery and around our 341 he was just about ready to take on case loads again. What a scary thing to have happen across the country! You are right! A card would be nice!

Thanks again fellow Coloradoan!

[tcreegan]

We did get a No Distribution on 9/16, the day after our 341. The only other thing it says is on 10/4 the Trustee Statutory Fees were paid. Not sure if that's a sign for anything!

...heck yeah that is a sign....big ol' sign saying you don't have anything to worry about!! The discharge will be your Christmas present...enjoy!

Well, there is the IRS to worry about.....

Tom, fellow Coloradoan

an afterthought: if the taxes were dischargeable, ask if your BK case can be re-opened and the taxes added. For 18K, it might be worth it...

[ladydewinter]

That is something we will look into for sure! Thanks so much! You have no idea how encouraging your posts are.

Lisa