Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law
This answer was rated:

I am considering filing chapter 7 since I am in the mortgage

business and have had 2...
I am considering filing chapter 7 since I am in the mortgage business and have had 2 very poor years. ytd 2010 is just 16k. I do not understand the rules related to the means test but understand that the last 6 months of that look back period is very important.

Also, I have some tax debts which I was told (85k in IRS) would be dischargable.. in Feb 2010. I had filed the returns late and had to wait 2 years until the time period had elapsed. There are also some old state taxes due from 1999-2001 that also should be able to be discharged.

In state of md - ch 7, are all of these debts dischargable including the IRS and state tax issues?

Thank you
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 43 minutes by:
6/6/2010
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified
HiCustomer
1) What happened in Feb. 2010?
2) What tax years are these taxes for?
3) When did you file the tax returns for these taxes?
4) Have there been any assessments for these taxes? If so, when were the assessments?
Ask Your Own Bankruptcy Law Question
Customer reply replied 7 years ago
Hello Christina,

Thank you for responding.

To your questions -

1) My Mistake Feb 2011..not 2010. I had to wait 2 years from time of filing any past returns so that they would be able to be discharged. I was told there would be a 2 year time period.

--- i would just file now had it not been for this matter.
--- I will be discharging about 110k in personal debt and 85k in
IRS debt.

2. Tax years 1999-2000 then 2002-2003- and 2006-2008 I believe is correct. The year 2004 earnings were 119, 2005 291k, 2006 244k, 2007 35k, 2008 - 23k, 2009 - 89k and 2010 will be aprox 50k at this rate.

3. The taxes were filed by a CPA who went through all 10 years of returns and re-filed or corrected, or filed in place of the return the IRS filed and this was done Feb of 2009.

4. When you say assessments what does that mean? I have liens now on my credit as I tried at the start of the year to get a IRS pmt plan set up. This did not work out as they agreed to 1440 per month and I am not making that much some months right now. So they made me noncollectable status until further notice. BUT they filed the liens.

I have no assets other than a old Cadillac - no 401k no retirement, no stocks, no bank account with any money - just 1k in the bank. No assets on paper (or otherwise) - no ownership of home.. Nada. Basically broke.

Hope that helps.

Thanks again!

Basically you can have state and federal income taxes discharged in any state, including Maryland. The rule is the taxes have to be from years where the tax return was due to be filed (including one 6-month extension, if applicable) more than 3 years before the filing.
2006 and 2007 are okay to be filed after April 15, 2011, but taxes for the 2008 return cannot be filed until after April 15, 2012.
Means test does look at income for the 6 months before filing.
An assessment is when the I.R.S. redoes your taxes because they found errors.
Ask Your Own Bankruptcy Law Question
Customer reply replied 7 years ago
Hello Christina -

Is there any chance the IRS could find a way to legally not have the taxes discharged. They filed some of the years for me, and we re-filed over them again and then the IRS came back and did not agree with some advertising deductions I had for some substantial advertising on the radio, this then caused a revision to come out. Maybe that would be the assessment as you stated?... But, all of those years we are talking about which is the majority of the money owed 85k with pen and int is from 1999 - 2006.

If I start making a great deal of money, I will go the other route, and just settle with everyone and hire a company to help make an offer in compromise to the IRS. If I can solve the problem in a year that is the best route, if the problem solving will take more than 1 year i am going to file the BK - 7.

I am worried though in the back of my mind that there will be some reason that I will not be able to discharge the IRS debts and then they will be vengeful and create issues.?

Is that something that I should worry about or is that over-thinking. I am sure people do this sort of thing every day, but I am not so sure they do it with 85k of taxes?.

Thanks again -

dcc
I recently had a client who was trying to have about $150K discharged, so 85K is not unusual.
The only problem I envision is that if the I.R.S. debt is more than $100K, you have to have a special hearing (called an Adversary Proceeding) where you have to prove that you did not intend to not pay I.R.S. (Not being able to pay is not the same as intentionally not paying, which can only happen if you are able to pay, but do not.) If the taxes owed are less than $100K, there is no requirement to prove that there was no intention to not pay.

Edited by Christina Fortunato, Esq. on 6/6/2010 at 3:55 AM EST
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified
cfortunato and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Customer reply replied 7 years ago
If I change jobs in July will that cause a problem for the Bk. Also, if the Bk were filed quickly IE August with the new job can they say I voluntarily left one job then did not have any income IE self impoverishment? I will make more money at the new company - commission levels are higher.

Thank you for accepting my answer!
You are absolutely allowed to change jobs. Even if you did change jobs to purposely make less, so you could file, there is nothing the bankruptcy court could do about it.
Ask Your Own Bankruptcy Law Question
Ask cfortunato Your Own Question
cfortunato
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
8,023 Satisfied Customers
Experience: Bankruptcy professor.

cfortunato is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
I have the same question. I had a Chapter 7 bankruptcy 13
I have the same question. I had a Chapter 7 bankruptcy 13 years ago. I have not seen on my credit report for the last 6 years. The SBA question says have you ever had a bankruptcy? Is it fair to say n… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,297 satisfied customers
What happens i file chapter 7 bankruptcy and judge denies my
Second opinion] What happens i file chapter 7 bankruptcy and judge denies my reaffirmation agreement...will they repo my car or will the co signer be able to keep it… read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
I am probably going to need to file a Chapter 7 bankruptcy
I am probably going to need to file a Chapter 7 bankruptcy in Minnesota because Geico is suing me for $100K for personal injures sustained by someone else that was involved in an accident. I am fighti… read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
I have a chapter 7 in process in las vegas, nv. I have a
I have a chapter 7 in process in las vegas, nv. I have a court date set for a reaffirmation agreement for my mortgage. I would like to change my court date to a more current date. What motion with the… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,366 satisfied customers
I filled chapter 7 and discharged a mortgage with Wells
I filled chapter 7 and discharged a mortgage with Wells Fargo in 2009. I did not reaffirm the mortgage but I continued making payments for these eight years. I requested a payoff from Wells Fargo and … read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
I have filed a chapter 7 back in June of this year.. today I
I have filed a chapter 7 back in June of this year.. today I got into an accident to which the other party was at fault.. i has to go to the hospital... if I am … read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,871 satisfied customers
I am considering filing a chapter 7 personal bankruptcy. I
I am considering filing a chapter 7 personal bankruptcy. I know some years ago there were some changes in the bankruptcy laws. What I need to know, first of all, is how much money can be retained in a… read more
LegalGems
LegalGems
Juris Doctorate
10,717 satisfied customers
Interested in information concerning personal chapter 7
interested in information concerning personal chapter 7 bankruptcy as a member of a 50/50 LLC … read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
Regarding my chapter 7 ProSe on the Reaffirmation $2000
Regarding my chapter 7 ProSe on the Reaffirmation $2000 behind on payments, $6000 equity in car Obviously, we don't want to be Repo'd with all that equity.My husband went to the reaff hearing today an… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
Regarding my chapter 7 Reaffirmation hearing tomorrow,
Regarding my chapter 7 Reaffirmation hearing tomorrow, husband is going without me. $2000 behind on payments, 6000 equity in car. When I try to talk to the people at "ascension capital" who do Cap1's … read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,366 satisfied customers
BANKRUPTCY: Debtor is filing Chapter 7 bankruptcy; and
BANKRUPTCY: Debtor is filing Chapter 7 bankruptcy; and elected to surrender their vehicle. Can the Creditor repossess the vehicle while the bankruptcy case is still open? Debtor has not received a dis… read more
LegalGems
LegalGems
Juris Doctorate
10,717 satisfied customers
BANKRUPTCY: A debtor wants to file a personal Chapter 7
BANKRUPTCY: A debtor wants to file a personal Chapter 7 bankruptcy and owns a small business. They are filing mostly consumer debts. Can the Debtor continue to run their small business and generate in… read more
LegalGems
LegalGems
Juris Doctorate
10,717 satisfied customers
My questions center around Chapter 7 bankruptcy. We have
My questions center around Chapter 7 bankruptcy. We have consulted with local attorneys, and want to verify the information we have received. We live in California, and have a household of 3 people (m… read more
socrateaser
socrateaser
1,031 satisfied customers
This is a Chapter 7 question. The Debtor was unemployed for
This is a Chapter 7 question. The Debtor was unemployed for 4 of the last 6 months, having worked the last 2 months. Her currently monthly income amount is above the local median, but averaged over th… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
My parents filed chapter 7 bankruptcy. They received a
My parents filed chapter 7 bankruptcy. They received a letter back from the attorney they hired and the letter stated, "they are over the limit on the allowable exemptions for a chapter 7".What does t… read more
Ray
Ray
Lawyer
Doctoral Degree
30,877 satisfied customers
This is a Chapter 7 case. The Debtor signed a reaffirmation
This is a Chapter 7 case. The Debtor signed a reaffirmation agreement less than 60 days ago and now wants to rescind it...the case is about to close, discharge was ordered but case is open for adminis… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
How do I find out if I qualify for chapter 7 BK Assets 2000
How do I find out if I qualify for chapter 7 BK Assets 2000 Med Bill Debt 22k Tax Debt 12K ( over 3 years old I have been making payments) Card Debt 9K Collections 7K Income SSec 1611 per month… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,366 satisfied customers
Filed chapter 7 and received discharge, massachusetts dept
filed chapter 7 and received discharge, massachusetts dept of revenue seizing assets and not honoring discharge. how do we make them stop, remove liens and return seized money? … read more
Amadeo Rivera
Amadeo Rivera
JD
82 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x