WHEN to file??

[Needing Help]

We have closed our business, and are way behind on lease & loan payments. It is only a matter of time (maybe days) before we start getting harrassed, if not a summons. My Atty. says we should file NOW, but I am concerned since we have several large CC cash advances that are only 30 days old. Plus, my wife and I are separating and haven't even filed the papers yet for child/spousal support.

Should I take his advice, or do you think he is just trying to get my signature on the bottom line? What are the disadvantages of not signing right now and waiting, say, 60 days?

Thank you.

[Needing Help]

ALSO... If I get my tax return (approx. 15K) and spend it before I file, is that OK?

[FreshLikeADaisy]

NeedingHelp, I'm no attorney but it seems like your gut instinct to wait on this is right on the money. Cash advances made within 90 days of filing tend to be examined very carefully. Waiting longer is no guarantee, but waiting at least that long helps immensely. Also, many people wait to file until after they have received (and spent) their tax return. Many people use it to pay the attorney!

Bottom line, I think you are wise to wait. If you know you're going to file, stop using the CCs now, and stop paying the unsecured debt. Make sure your house pmts are current if you intend to keep it, ditto for cars, and no luxury expenses period, cash or credit. Hope this helps. Good luck to you!!!

[ameliabedilia]

Does he want you to file now because of a summons? I would find out exactly why he thinks you should file now. If it's not a good reason I would wait.
By the way- You have got to change your exemptions so you are not getting such a huge tax return each year!