We are about to file bankruptcy and my husband came up with an idea today that might save us from doing this. Here is the situation. We are losing our house, have about 20000, in credit card debt and a deliquent truck. He has about 80000, in his Ira and if we cash it out we will take home around 45000. giving us enough to pay off everything except the house. I am ok about losing the house but I don’t want to pay big fees on next years taxes. I know the IRS pentalies us for the early with draw but do we have to claim the whole amount or the balance of the amount after pentalties on our taxes and is it worth it. They are wanting us to pay around 1000 per month on a chapter 13 for 5 years. I am so confused. Should we just wait it out and see what happens after the house and just take enough to pay the credit cards and truck..

I am currently in a chapter 13 bankruptcy. My case was confirmed in 4/10 I used this bankruptcy to pay off a lot of debt I had including taxes and put it into a repayment plan. A lot of what got me here is that my holdings were decreased. During 2010 I forgot to claim 0 on my w2, and so I owe some taxes for 2010. I owe about 1300 dollars. I have now changed my w2 so that the irs takes the max out of my paycheck. Do I pay these taxes separately? What are my options. I can pay the 1300. I just don’t want my case dismissed. Any answers would help me a lot Thanks.

since i am filing and my income for 05-07 is under 10 grand a year (i am in ohio also) can my taxes be included in the bankruptcy? i am filing chapter 13.. if not what si the ebst way to go about paying these taxes that i cannot afford to pay. i owe roughly 5000. i know the irs has payment plans, but i know they also settle too. can you settle and get a payment plan?

i am very confused in this sort of thing.
for the second poster i cannot file chapter 7 becuase they will take my car and it is really my only asset.

In chapter 13 I understand you must turn over any tax refunds to the trustee. While you are allready in the plan…How do they know if or how much a refund you get? Do they require you to turn in copies of your tax filings each year? My second question is. If I get a refund from Irs, but owe to the state, will the court allow me to pay the other one with the refund? before they make me turn it over?

My husband and I filed chapter 13 bankruptcy in 2006. The attorney advised us to increase our withholding allowances so that there would not be a tax refund for that year. Our attorney never advised us to change the status of the withholding allowances so that we would not owe the IRS. My husband was checking his paystub to see what we might be refunded for 2007. He realized that we owed money at that point. We contacted our attorney in October 2007 with no results. I then emailed him over 10 emails with no result. In Jan. 2008, I sent 3 letters, called his office with no answer. In April 2008, I sent a certified letter with no calls. I contacted the local bar association and they advised me to find a new lawyer. I contacted a new attorney and she found major errors on the case. She stated that our attorney should have not confirmed the case based on the higher allowances. I sent out another certified letter with no response. Should I sue for legal malpractice?

currently i am in the process of filing bankruptcy, chapter 13. i live in louisiana and have been fortunate to pay only 500 bucks as a retainer fee. i am under the understanding that certain debts take priority over others being the IRS, secured, and unsecured. i am praying that my bill is no more than 600 bucks a month. my question is, currently i have a used car that is on its last end. i am desperately trying to save enough cash to purchase another car, which will also be used until my bankruptcy case is paid out. i am the type of person who can make due and live off of a budget considering i lived off of noodles and cafeteria food in college. therefore, do the trustee cut your check so bad that you are not able to save a penny. i am hoping to at least save something once a month in order to purchase another used vehicle.

please no sarcastic remarks from people, i need some truthful honest answers. Thanks

I’m an unemployed teacher and have just lost my car (my only asset) and am representing myself in my bankruptcy. My combined debts (assuming I’ll still owe about ,000 on my car once it sells at an auction) is approximately ,000. I do not have a savings and no longer have retirement accounts because I had to cash them out to cover living expenses. Twelve years ago I had to file bankruptcy and am concerned about how that will look to the judge. I worked to earn my college degree since then and was doing well when suddenly I found myself without a job. Any thoughts on that? My debts back then were fully discharged, and I’m hoping to file a Chapter 7 for another discharge of my debts. Here are some of my questions, any input would be appreciated:

1) Is there any kind of assistance available for people who cannot afford the filing fee?
2) Once I file, how long can I expect for the court date?
3) Does the online bankruptcy class that is required cost anything?
4) Can my 0 debt to the IRS (back taxes) be included or just the interest and penalties?
5) Any suggestions for someone doing this without an attorney?

I’ve done my research and am actively seeking answers to my questions, but there are some very informed and helpful people on this site, so for peace of mind I really welcome your input.

Thank you!

What do you do to fix your life when you’ve had to file bankruptcy, a teen turns to heroine and steals everything (but is 26 now-living away)– too little too late now – all gone, you lose your home after cancer, you’re working very hard, you owe a lot of money to a lot of people, your cars keep breaking down, you owe the IRS, you have no health insurance, you lose your job (lay-off) and can’t pay car insurance, car insurance lapses and then you can’t get new insurance because it costs MORE because you "let it" lapse, you can’t get ahead because bad bad things keep happening – for years and years and years (not a new thing), you are feeling helpless and hopeless. There’s no help out there because of course you "make too much money" for assistance. No family to help (you don’t want to take from anyone anyway) and you are afraid to wake up every morning? Plus you have a wonderful teen who deserves the WORLD and he’s gone without for many years himself because of everything?
Added after reading answers
1. I am a female
2. I am not the drug addict – my son was. There was a lot of advice about 12 step programs and don’t do drugs. THAT ISN’T MY PROBLEM. I’m NOT asking because I’m feeling sorry for myself. I’m explaining HOW THINGS GOT BAD and wondering how I can get out is all. "Twiddle your thumbs and feel bad for those without thumbs?" First of all, I’ve been one to give my last dollar to a hungry man on a street. The answers I was looking for were some positive real answers from possibly someone with background in this type of thing. I’m looking for real answers – not for you to feel sorry for me. The praying part IS A GOOD ANSWER – and hearing others stories help too (thank you). But the rest of you, if you are going to answer the question, read the question.

I have a 2nd mortgage that may be charged off–What are the tax ramifications? I know it can be reported to the IRS as income–but we are also filing a Chapter 13 bankruptcy–so we will be paying the mortgage through the court, so itwill still be paid. Is it only reported if we didn’t pay the mortgage? Or is itreported regardless?
What else do I need to know?
Randolph–the rude answer is not necessary–If I had the income now to pay it without filing bankruptcy—I would. That’s the problem–What is your source of knowledge in answering this question–you don’t put anything down. How do I know you’re not just an idiot ?
The first mortgage is still working with us–but I’m not sure how much longer they will do so. We are not eligible to file a Ch. 7. I know the bankruptcy will not affect tax obligations. If the charged off mortgage is reported as income–that’s what I’m wondering about IRS tax wise.

Here’s my situation. I went bankrupt in 2008. I got this job in mid March 2008. I was getting bonuses for my good performance. At the time I knew nothing about this, but apparently I was being paid the bonus pay as an independent contractor. I’m a full time, salary employee, thus I also received a W2. Come tax time, when I try and do my taxes online, I was told my bonus should have been included with my W2 and properly taxed. Also, to fill out an SS8 form. I spoke with my boss about this and he said that the law changed in 2008 to where my bonus pay had to be taxed and included in my W2 but not before I received the amount in my 1099. If I declare my bonus pay as an independent contractor, would this affect my bankruptcy? Would the IRS come back and ask me why didn’t I report this when I went bankrupt? Should my employer fix this? Any input is appreciated.

Thank you.

I am considering filing chapter 7 bankruptcy. I have 3 major credit cards, all of which have been charged off and added up have a balance of roughly 20k with interest and attorney fees. I also have some other random bills which have gone to collection: cell phone, utility bills, medical bills, etc, that add up to about 3k. I also owe about 10k in back taxes to the IRS, which I’m not sure if this could be included in the bankruptcy? I have made some mistakes in the past, living beyond my means and am much more educated and mature now and would like to get my life and credit built back up.

1. Is bankruptcy a good idea for me?
2. Can taxes be included in a bankruptcy?
3. How long does it take to get my credit built up to say a 650-700 credit score after a BK and are banks willing to give you a loan if they see you have a bankruptcy, even if your credit score is good now?

I worked for a mortgage company in 2003 and we would give someone a loan the next day after a BK discharge. I know things have changed but any insight in today’s credit market and how a BK is viewed by creditors in 2009 would be very helpful. Thanks

After 5 years, my Chapter 13 case is paid in full this month 2/10. I just received a letter form the trustee stating my case was going to be dismissed in April because I did not submit my tax returns from 2005 – 2008. I have requested copies of my tax returns from the IRS and I am going to send them in. My attorney said to submit them ASAP to avoid dismissal. My questions are
1. What is going to happen if I have already paid off my plan?
2. Will I get my discharge papers if I provide this information?

I just filed Chapter 13 bankruptcy, and filed for 2006 (i worked all year) but did not file years 2000, 01, 03, 04, or 05. In 2002, I did because I got a job with Border Patrol but worked only 3 months. The rest of the time (years) I was either in school or had no job or both. I just got a letter from the IRS that they want my tax returns from those years. I didn’t file, and they want a reason why.
What are the penalties ( I was told I didnt have to file) or what should I say? Would I have to pay penalties for not filing? I’m scared (IRS is scary) and just want to know what I should do? I need it back in 12 days (the letter). Any help would be great!

My student loan was listed as a creditor in the chapter 13 plan, so I think that they must have recieved some money from the trustee, (actually I thought that they were fully paid, like the IRS)…now this collection agent is after me for 5,000 which is probably the total amount. Is there some way to find out if they recieved money that I paid throught the trustee??

My ex-husband is the most unresponsible person i have ever known in my life. He lied to me on a daily basis, borrowed money from people & never payed it back. Took our kids savings bonds..ok he stole them & cashed them in. Forged my name on tax return checks. Filed bankruptcy twice, hid bills from me, we had a foreclosure on our home. i begged this man for marriage counseling only to hear him say i dont need anyone to tell me what im doing wrong, he even told me he had brain cancer to see how i would react. he was totally addicted to online games & met another woman & decided to end our marriage before he even met her. in the past 3 years she has come to visit him 3 times now..the 1st time after one week they decided they want to get married. He owes the irs ,000 & because my name is listed as the beneficiary i am liable for it too. he did not pay taxes on his retirement saving he withdrew when he was let go of a job. will he ever change??? BTW i was married to the nut for 23yrs.

After filing Chapter 13 and making court assigned amonthly payments to this ‘trustee." for over 10 months(90.00 per month =over 900.00)From very start, boyh my lawyers and mine intentions, were to refile from 13 to 7. Almost 1 year later,refiled to Chapter 7, Now another second,differnt trustee demands any tax refunds collected since file date and other tax forms filed for previous years stating these funds are part of bankruptcy estate. These are tax refunds for wages earned prior to the Bid.B date.< if the IRS or State Reveue had not already nabbed them. How is each of these trustee’s making and how many estates are they assigned or given?

Why does everyone hate the IRS? I don’t get it.

There was this person complaining on here earlier about having an online business that crashed in 2000 along with alot of other companies and as a result, he has to pay the government extra money every year with interest because he owes them money he was unable to pay because he had to declare bankruptcy.

First off, if you go bankrupt, it’s YOUR fault. No one else is to blame.

Secondly, the government needs that money to pay for schools and other programs. The IRS is a good thing.

I know that occasionally the IRS may fine people too much money and charge too much interest, but how do they expect people to pay them back if they don’t take aggressive measures?

Also, if you have a business, you need to incorporate it. This guy didn’t do that. It was his fault and to all the other whiners out there, I have one thing to say:

Shut up and pay the money and fines. It’s YOUR fault for getting into debt.

What do you think?

I owe 0 bucks for my 2007 federal taxes and want to make installment payments over a few months to pay it off. Will I get in trouble for requesting this? I have been in my ch.13 for 3 years. Also, I am pretty sure that they will take my stimulus refund and send me the difference. Normally and refund from the IRS is supposed to be signed over to the trustee. I just don’t know a different way out.
Would this be grounds for a dismisal??

I was not ordered to surrender my tax refunds, I have always got them on time, so my stimulus will be the same then? I just paid off my Chap. 2 weeks ago, haven’t got my discharge papers. Got DD on my Federal refund back in February, no fees taken out, it was DD from the IRS and there was no delay in getting it! What should I expect? Any experts out there? Please please help me….

How do I reply here to the people who answer my questions?

or is there a irs thing (paper )you need and what kind