Good morning Rhonda,
I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.
It is possible to discharge old taxes under certain situations. if the majority of your taxes are from 2011 and 2012, you can likely discharge those. The following are requirements to be able to discharge taxes in bankruptcy:
- The due date for filing a tax return for which you owe taxes was at least three years ago.
- Your tax return was in fact filed at least two years ago.
- The tax assessment (the time when the IRS sent you notice of the taxes you owed) was at least 240 days ago.
- Your tax return was not fraudulent in nay respect.
- You are not/have not been found criminally guilty of ax evasion.
You asked: We are behind in our daily bills - utilities, mortgage ect and my husbands car just stopped. He really needs a car to go to work. If he accesses his 401k for lets say $35,000 how does that affect our ability to settle with the IRS or file bankrupsy in the next 6 months.
You could be charged with preferential payments to creditors and that will severely complicate your bankruptcy. See this link: http://www.alllaw.com/articles/nolo/bankruptcy/preferential-debt-payments.html#
Also if he buys a car if he pays cash will the IRS or bankrupsy court take it? Should he instead put 1/2 down like $8000 for a $16,000 car. Paying cash for a new car will almost certainly result in it being taken by the trustee. Lease a new car and put down a sizable down payment. Leased vehicles have no equity and won't be effected by your bankruptcy.
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I wish you and yours the best in 2016,