Can I Even File For Bankruptcy?

[Michael CT]

I've just found this message board, and hope that some of the good information I'm seeing posted from people here here can help me.
Here's the honest breakdown of my bad (and self-created) situation: It's a long story... I hope some of you will read it and offer advise.

In 2001, I left a good paying white collar job when I began to sink under the weight of some growing psychological and drug problems. After a year, my savings ran out and I began to take out a series of unsecured personal loans and additional credit cards. Of course, I used new loans and cash advances to pay my bills. I listed my previous job and salary information on all loan and credit card applications taken out after I became unemployed.
I haven't filed tax reurns since 2001. I lived on the monies from loans and credit cards. I have no proof of income since that time. The well has now run dry and I'm in debt for approx. $200,000 to many creditors. The collectors have now begun to call.
I'm sober now (no rehab, just the help and support of family and friends), actively seeking work, and desperately need to find a way to get my life back on track. I have no property or monies to be taken from creditors. I'm looking for work, but nothing has happened yet.
I'm ashamed of what I've done. I've been frozen with fear of the future for too long. I've created my own situation, and am afraid to attempt to file for chapter 7 bankruptcy because of lying on loan and credit card applications. I'm afraid I'll be charged with fraud. Will my case be thrown out of court because of my dishonesty? Will a lawyer even be able to help?
In all honesty, in my deluded prior state, I planned to end my own life before the wolf came knocking at the door, but now I've gotten sober and realize that life is too precious to throw it away. Still, I'm really in trouble, and really don't know if the option of Chapter 7 is even possible for me.
I hope some of you out there will have some advice.

[BKOnce]

Well, what do you think is the worst case scenario for filing C7? Jailing for deception/lie, payback, or debt forgiven?

[keepmine]

About all you can do is see a lawyer and lay it all out to him/her.
For sure, you need to file those back tax returns.
Many cc applications are not maintained for more than a few years. They may not be able to prove any misstatements.

[HHM]

If you really want to start taking action, schedule consultations with 3 different BK attorney's and lay it out for them.

Generally, bankruptcy is not concerned with why you got into trouble so long as it was not overtly and intentionally to commit fraud. Moreover, it appears to have taken you a several years to accumulate the debt, so no one is really going to question your intentions too closely. As for the credit applications, it is pretty rare for a creditor to object on the grounds of lying on a credit application...mainly, as has been pointed out, they often don't keep it on file, and it can be fairly hard to prove.

That is not to say you will have an "easy" BK, but you are certainly a text book candidate of someone who NEEDS to file BK and get a fresh start, and honestly, you probably won't have too much problem successfully getting your discharge from BK.

[no_it_all]

For sure, you need to file those back tax returns.

Well, that depends....If the OP wasn't working (as he stated) and his income (say, for 2005) was under $10,500 for head of household or under $8,000 for single why would they be required to file?

[keepmine]

Well, that depends....If the OP wasn't working (as he stated) and his income (say, for 2005) was under $10,500 for head of household or under $8,000 for single why would they be required to file?

Many trustees require 2 years of tax returns.

[Spartan]

You need the last tax return that you filed. With that, your lawyer will prepare an affidavit stating that since that last tax return, you have not filed any return as you do not believe you have earned income that required filing of income tax.

That is the end of the story.

My lawyer said it is a rather common situation. She also has me signed an authorization allowing the trustee to get a profile from the IRS, if the trustee wants to. We all know the trustee wouldn't be bothered.

[no_it_all]

Many trustees require 2 years of tax returns.

Only if you had to file a return. If you are not obligated to file a tax return the Trustee cannot require it. Sort of like demanding your child support papers when you don't have children......

[Michael CT]

Only if you had to file a return. If you are not obligated to file a tax return the Trustee cannot require it. Sort of like demanding your child support papers when you don't have children......

This is exactly my situation. If you don't make over $x amount of annual income, you don't file taxes. I didn't earn any money for the past several years, and therefore didn't file taxes. It is the Catch22 of my inability to show tax filing for the past years.

And many thanks to all who responded to my post. I truly appreciate the kindness of strangers in this very tough time.

[SamanthaJones]

Lies on credit applications.

I've been told creditors only get notice of BK filing- they do not get or see the schedules, etc. that are filed in the court. If so, there's no reason a creditor would decide to question the validity of your credit application.

[AMISLANDER]

I've just found this message board, and hope that some of the good information I'm seeing posted from people here here can help me.
Here's the honest breakdown of my bad (and self-created) situation: It's a long story... I hope some of you will read it and offer advise.

In 2001, I left a good paying white collar job when I began to sink under the weight of some growing psychological and drug problems. After a year, my savings ran out and I began to take out a series of unsecured personal loans and additional credit cards. Of course, I used new loans and cash advances to pay my bills. I listed my previous job and salary information on all loan and credit card applications taken out after I became unemployed.
I haven't filed tax reurns since 2001. I lived on the monies from loans and credit cards. I have no proof of income since that time. The well has now run dry and I'm in debt for approx. $200,000 to many creditors. The collectors have now begun to call.
I'm sober now (no rehab, just the help and support of family and friends), actively seeking work, and desperately need to find a way to get my life back on track. I have no property or monies to be taken from creditors. I'm looking for work, but nothing has happened yet.
I'm ashamed of what I've done. I've been frozen with fear of the future for too long. I've created my own situation, and am afraid to attempt to file for chapter 7 bankruptcy because of lying on loan and credit card applications. I'm afraid I'll be charged with fraud. Will my case be thrown out of court because of my dishonesty? Will a lawyer even be able to help?
In all honesty, in my deluded prior state, I planned to end my own life before the wolf came knocking at the door, but now I've gotten sober and realize that life is too precious to throw it away. Still, I'm really in trouble, and really don't know if the option of Chapter 7 is even possible for me.
I hope some of you out there will have some advice.

This sounds like a subchapter of my situation.....except I didn't work but did receive alimony & child support....so I did have income but maxed the cards due to the big "C".....

I didn't file taxes until 2004 when I had to pay those back taxes to get the IRS off my back ( I owed 2001, 2002, 2003....about $18K)....my bk attorney said take care of the IRS before the bk...

I explained that my $50K in cc debt was due to ..... it didn't matter....so...

just get some opinions, chuck it up to experience, and realize you're not the first to file bk due to bad friends & experiences...and you won't be the last....but it's ok....

I've been there & done it & made it, you can too. This is a great place to learn from people who've been through it & some of us can guide you or give you information according to our experience of it.

[HHM]

I've been told creditors only get notice of BK filing- they do not get or see the schedules, etc. that are filed in the court. If so, there's no reason a creditor would decide to question the validity of your credit application.

That is partially true, the creditors get notice of the BK, which is simply a 1 page document that informs that so and so filed BK, the date of the 341 meeting, and the deadline for filing objections. HOWEVER, if a creditor wanted to, they can log into PACER and download the petition. Any document filed in a BK case is public record (unless the court seals it) and can be accessed by anyone.

But most creditors don't go to the trouble of reviewing a persons credit app when they get notice of a BK. Most objections to discharge filed by a creditor a related to timing and the type of purchase (i.e. luxury goods, cash advances, balance transfers, etc).

[Frank]

AMISLANDER, congratulations on being a survivor! My sister died of breast cancer.

[AMISLANDER]

AMISLANDER, congratulations on being a survivor! My sister died of breast cancer.

Oh god, my mom had a breast removed back in 1980...she just turned 81 in December.....

No my issue was with COCAINE.....but I did survive it! It also helps that I'm not a pill taker, don't smoke weed...never tried anything other than cocaine in that laundry list of substances and didn't get into it till I was over 38 years old so my addictive tendencies were pretty nil.....but it caused me a world of trouble which has taken quite a few years to deal with...but, I did!