Accounts long delinquent....too late to file?

[Annihilus]

Hey guys - nice and informative forum here! I wanted to get some opinions on my situation.

About 4 years ago I lost my job (for about 6 months) and got divorced, which started a nice downward spiral which I am now trying to get myself out of. I now have a halfway decent job, no ball and chain (but also no house ) and a whole mountain of debt delinquent for more than 4 years.

$25,000 Credit Cards
$15,000 Student Loans (current)
$1,400 Back Taxes to IRS (current payment plan)
$3,000 Back Taxes to state of MN (was just notified of these - from 2001)

My take home pay is about $2100/Month. My car is paid off so I don't have a car payment. I plan to see an attorney, but somehow doubt I'll qualify for a chapter 7. I am mostly worried about all those delinquent credit cards that have been around forever and the notice from the state of MN that I owe that damn back taxes (this happened due to cashing out 401K when I was out of work and I didn't figure the taxes correctly - they just figured it out).

I want to start a family and get a house and am trying to determine the best way to do this as soon as I can.

Thoughts?

[Minnymouth]

Go see 2 attorneys for a "free consultation" and see what your options are. You may be surprised - you may still qualify for a Chapter 7 to clean it all up. But do it real soon, bankuptcy laws change in October of this year.
Some old taxes can be discharged if they qualify. Student loans can't though. Filing might help your situation.
Nothing lost by a "free consultation".....

Good Luck,

Minny

[Annihilus]

Go see 2 attorneys for a "free consultation" and see what your options are. You may be surprised - you may still qualify for a Chapter 7 to clean it all up. But do it real soon, bankuptcy laws change in October of this year.
Some old taxes can be discharged if they qualify. Student loans can't though. Filing might help your situation.
Nothing lost by a "free consultation".....

Good Luck,

Minny

Thanks.....I've got an appointment for later this week, just wanted to put a feeler out there in case anyone else was as bad a procrastinator as I've been. If I'd have filed back when I was unemployed it probably would've sailed through, but I was a mess back then and not thinking straight.

[Cmonlottery]

You might be able to call the collection companies and make a cash offer. You will probably be able to settle those old debts for pennies on the dollar. Since the student loans and back taxes aren't dischargeable you might come out better in the end.

[Annihilus]

You might be able to call the collection companies and make a cash offer. You will probably be able to settle those old debts for pennies on the dollar. Since the student loans and back taxes aren't dischargeable you might come out better in the end.

The taxes are over 4 years old.....I thought there was an exception for those? No?

[Cmonlottery]

There are certain criteria you have to meet to get the federal taxes discharged.(the state taxes may be different) It is not as hard as getting student loans discharged, but it can still be hard to do.

[Annihilus]

There are certain criteria you have to meet to get the federal taxes discharged.(the state taxes may be different) It is not as hard as getting student loans discharged, but it can still be hard to do.

Just talked to my attorney yesterday:

1. The taxes are completely eraseable. The criteria is that the returns (both federal and state) must have been originally filed more than 3 years prior (they were) and cannot have been assessed within the last 240 days (they were not) - so they are not a problem.

2. Student loans are next to impossible to write off.

3. He said I more than qualified for a chap 7 - so he's got my check and moving forward.

Time to keep my fingers crossed!