Well, husband makes good money but medical bill co payments have gotten out of hand - mainly because of putting grand in program in Utah and fighting with insurance company to pay the bill. So have about 30,000 in med bills - which they are now garnishing wages. Plus - IRS decided too many deductions so now forcing single 0 dependents. Cut the crap out of our income and we won't make it. We adopted youngest grand and have custody of oldest grand. We own home with 2 mgts. one has already been modified to 2% and other going to be modified. Or maybe can be discharged in bankruptcy as it is a line of credit.
1. We own a motorhome value 10,000 or so - on paper
2. We have a large refund from IRS because of adoption credit but have not filed return yet. From 2011.
Can we do this and not loose refund or motorhome?
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Well, I can sell motorhome to my son with excuse we have to have money to live on because of IRS actions. Medical bills have already garnished my husband's wages. Have not figured out how they did that because the lawsuit and bill is in my name only. I had planned to do a modification on the 2nd/line of credit but the bank keeps getting sold.
Normally, how long does it take to finalize a bankruptcy? Makes a difference on what I do about IRS filing. Only have till April of next year to do a revision.
It will be easy to show use of money from sale of motor home to survive and pay bills because IRS forced single 0 dependents cutting our income severely. Plus the garnishment. I read somewhere that lines of credit are possibly discharagable in bankruptcy. Even with collateral. With property develuations, there is nothing for them to foreclose on. No profit on paper. Not yet anyhow.
There is no real normally when it comes to finalizing, it all depends on the individual case. You need to do the IRS filing, it is an asset of your estate, so if you file bankruptcy they will make you do it. The lines of credit MIGHT be dischargable if it is shown the primary mortgage is pretty much upside down, but there is no guarantee. The court may just forbid them from foreclosing and leaving the lien on the property if you reaffirm the house in the bankruptcy, unless your house is taken in the bankruptcy and then the line of credit would generally be extinguished.
I can file the IRS return with all the normal deductions and receive a small or no return. Then after the bankruptcy is finalized I can file a revised IRS return. Can they go back and pull that into the bankruptcy? File a "normal" IRS return without all the extra deductions that we could use - - before or during the bk and then when bk is final then file a revised IRS return showing things that we should have filed originally. That is why want to know how long it will take to finalize the bk. We will file revised after bk is final. Hope I am making sense.
OK, friends and pool are calling. 95 degree water with our heat wave. Will be back for more info later. Thanks so far. I at least have an idea where I am going with this.
Think I have a handle on this but don't have a whole lot of trust in "local" advice. Talked to bankruptcy attorney and he said we have $30,000 in protected assets and our motor home would fall under that. He said that our property value - the way the first is modified - would leave us upside down in property value and therefore the 2nd could be basically discharged under a 13. Modification took large chunk off amount owed but if we sell, refi or anything else within 3 years they add that chunk back on as owed. That takes us to our current property value plus. The lawyer said don't make any more payments on the second. I am a little uncomfortable with his advice and don't want to make a bigger mess. Also - do you know for taxes - can I claim my grown son who is not working - on my taxes? He is the one where all the court actions and custody court kept him from going back to work. BTW - update on that - mom is basically homeless with no car and no drivers license. Child is sleeping on a chair in boyfriend's parents house when with mother. ANd mother is leaving child with father 90% of the time now. So slowly pieces are falling into place. And not destitute - but would sure like to get this 2nd/line of credit deleted. Would make things much easier. Have husb, myself and 2 children we are raising. ANd both children with medical/FASD issues. OK got way off the point of bankruptcy. Will wait for you to be online for answers
Lawyer said we are right at the edge - chapter 7 would not discharge 2nd. But chapter 13 we would have to make like 250 a month payments for 2 years and it would be over. So we are still borderline till he takes a good look.
One more question. We have a loan against our 401K. Had not thought about that. What happens to that loan?
Just to clarify so I completely understand - re the 401K. That loan is secured by the 401K itself. So, I would assume from what you say that we will have to pay back that entire amount. Don't mind paying back this loan, but if forced into this bankruptcy might as well discharge as much as we possibly can.
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