Taxes
I'm gonna explain my cousin's situation to see if there is anything she can possibly do. Here goes:
My cousin lost her job due to downsizing. Well, in the mist of all this, her car was repoed, cc's charged off, and other collection issues. She did find another job, but it's not paying anywhere near what her previous job had paid. Filing a Ch 7 has been on her mind, and I'm pretty sure she could pass the MEANS test. Well, the other day, she found out a tax lien has been filed on her because she owes like, $13,000 in Federal taxes. She knows that can't be discharged in a BK, but I'm just wondering how a Ch 7 and back taxes work? Even though she has a lien placed against her, what will they do? She doesn't own anything they could take, but I've heard of the possibility they can do a bank levy. She has bank accounts, but really no money in there that would satisfy the IRS if they levied her bank account. She told me she set up a payment arrangement with them for $100 a month, but with the amount of that debt, is there a possibility the IRS still might garnish her wages? Her life really is messed up and I feel sorry for her. If she files a Ch 7, would that lift the lien?
My cousin lost her job due to downsizing. Well, in the mist of all this, her car was repoed, cc's charged off, and other collection issues. She did find another job, but it's not paying anywhere near what her previous job had paid. Filing a Ch 7 has been on her mind, and I'm pretty sure she could pass the MEANS test. Well, the other day, she found out a tax lien has been filed on her because she owes like, $13,000 in Federal taxes. She knows that can't be discharged in a BK, but I'm just wondering how a Ch 7 and back taxes work? Even though she has a lien placed against her, what will they do? She doesn't own anything they could take, but I've heard of the possibility they can do a bank levy. She has bank accounts, but really no money in there that would satisfy the IRS if they levied her bank account. She told me she set up a payment arrangement with them for $100 a month, but with the amount of that debt, is there a possibility the IRS still might garnish her wages? Her life really is messed up and I feel sorry for her. If she files a Ch 7, would that lift the lien?
I told her, she better stick with that payment plan so they won't garnish her wages. She's was already aware of the fact that they take refunds that are due to her because they took this past one earlier this year. So will the lien stay there until the balance is paid in full?
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