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Elizabeth Prentice
Elizabeth Prentice, Attorney
Category: Bankruptcy Law
Satisfied Customers: 170
Experience:  Managing Attorney for one of the largest consumer bankruptcy firms in America.
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I am 68 years old, living on social security with my wife.

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I am 68 years old, living on social security with my wife. We own nothing. No home, 401k, stocks...nothing except two timeshares free and clear, but the IRS didn't want them. I have been in an offer and compromise for several years now and still no answer. We moved to Thailand because she is Thai and I couldn't afford to make my credit card payments or car payment after loosing my job in December of 2010. I owe about $9,800 in credit card debt plus maybe $3,000 between the value of my 2007 Volvo and the wholesale value.

My question is this: I want to figure out how to pay people back, but my ss just barely covers our rent and expenses here in Thailand. I would like to earn money online and pay people back so I can move back to USA without worrying about all the money I owe. I am sick about it and I filed Chapter 7 bankruptcy and was discharged in March of 2007.

I was thinking I could start a corporation maybe and earn money until I had enough to pay off each card in full and then settle with the IRS.

I feel so ashamed and trapped.

Ideas?
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Josie-Mod replied 2 years ago.

Hi, I'm a Moderator for this topic. I've been working hard to find a Professional to assist you right away, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you. Thank you!

Customer: replied 2 years ago.

While I wait for an answer, is the 7 day free trial limit still counting down?


 


I just want to know with my situation if the credit card companies can get a judgment and take money out of my wife's account which is located in USA.

Expert:  Josie-Mod replied 2 years ago.
Thank you for your continued patience. We will continue the search for a Professional for you.
Expert:  Elizabeth Prentice replied 2 years ago.
I am a bankruptcy attorney and I would be happy to assist you! Since you filed bankruptcy in March of 2007, you will not be eligible to file a Chapter 7 bankruptcy again until March of 2015. You are eligible to file a Chapter 13 presently. Chapter 13 bankruptcy is a 3 to 5 year repayment plan, in which you make payments to a trustee appointed to your case. You would repay your income taxes in your bankruptcy. At this time, though, it does not sound like you need to file bankruptcy right away since you are not yet back in the USA, so you may want to wait to file Chapter 7. A Chapter 7 bankruptcy does not require repayment, but your IRS debt would be repaid by you upon a separate repayment plan after your bankruptcy. This repayment plan may be longer than 5 years with lower payments than in a Chapter 13.

The good news is that your creditors may not garnish you SS income. Additionally it sounds like you do not have assets they may attempt to attach, therefore any judgment a creditor may obtain in a law suit would not likely affect you. Should they sue you (take legal action) they may be able to garnish a U.S. Bank account; however I am unsure whether they will be able to garnish an overseas account. Therefore if you know of a judgment or bank account that is about to be garnished, you may want to remove your funds.

The IRS may garnish your social security in the event you do not work out a repayment plan with them. Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows Social Security benefits to be levied to collect unpaid Federal taxes. The IRS is usually willing to work on reducing debt or creating a repayment plan, so I suggest you continue working on your offer and compromise.
When you return to the USA I recommend you meet with a bankruptcy attorney in your home state.

I hope my answer has assisted you and that you will leave me a positive rating!
Elizabeth Prentice, Attorney
Category: Bankruptcy Law
Satisfied Customers: 170
Experience: Managing Attorney for one of the largest consumer bankruptcy firms in America.
Elizabeth Prentice and other Bankruptcy Law Specialists are ready to help you
Customer: replied 2 years ago.


What do you think about me forming a corporation in Nevada (for example) with a nominee so nobody knows I own the corporation? I would use a USA bank and let the profits build up until I can repay my credit cards and of course pay the IRS the normal taxes on the c-corp.


 


We would like to return to America, but I would need more money to live on...and pay my debts.


 


My wife has a green card (she's a Thai citizen) from USA since she lived with me in Seattle for 3 years. If we stay in Thailand for over 1 to 2 years she may have difficulty getting another visa to return to America, but if we have continued connections with all our family members in America she can get another re-entry visa especially if we have a business in USA proving our intent to return to USA. That is another reason why I want to pay off our debts...so we can return debt free (except IRS). I am thinking a corporation may shield us from possible judgments so we can earn money beyond my ss and then pay back our debts.


 


What do you think about that?


 


Thank you


Paul

Expert:  Elizabeth Prentice replied 2 years ago.
Paul:

The site requires me to let you know that you must post this new question about corporations in the business law area, as it is a new question. I would be happy to answer it if you re-post it.

With regards XXXXX XXXXX bankruptcy question, having debt can be a difficult issue but bankruptcy will permit you both a fresh start. In order to file bankruptcy you must reside in one of the 50 states or Puerto Rico in order to file. You must remain residents in a US state for at least 90 days prior to filing. Hopefully this information will assist you in future planning should you decide to file bankruptcy!

Corporations can be attached if a creditor is able to "pierce the corporate veil." This happens regularly in Nevada when a Corporation is sued in order to collect upon a debtor's debt if the Plaintiff is able to show that the Corporation is only made to protect the assets of the debtor from a creditor. Although building a corporation may be a wonderful idea if you are building a business, you should submit a new question in the business forum regarding its liability.

I hope you will please leave me a positive rating for my response!

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