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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I have retained an attny to file a chapter 7 but have not filed

Customer Question

I have retained an attny to file a chapter 7 but have not filed yet because I cannot get a straight answer about my personal income tax debt

I did not file a tax return in 2002 & 2003- the IRS did it for me when I went into a repayment agreement over 3 years ago. They have placed a lien on me about 6 months ago because I could not keep up with the payments.

I owe $12,000 personal income tax for 2002(half of that is penalty & int)
and $4000 for 2003 again much of that is penalty & int

I make $33,000/year. I am separated, no dependents, currently filed for divorce All the debt is mine. None is my husband's

There is also considerable medical debt from 2002/3 and some credit card debt.

I have no assets except for a 1999 Chevy- blue book value >$900, I rent and have no savings except for $4,000 in my 401k

My question is- will the bankruptcy get rid of my personal income tax debt. If not - how do I get rid of this debt? I have no money to make an offer in compromise. How long will the lien be on me- does that mean they can take any inheritance or unexpected windfall?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :

I am going to open your question to the other experts

Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

You IRS tax debt can be discharged because it is for tax years that are more than 3 years ago, and the IRS filed them for you more than 2 years ago.

However, you may not be able to have to lien removed.

1) What property has the lien been placed on?

2) What is the current market value of that property?
3) What is the balance - if any - on the mortgage for that property?

Customer: replied 6 years ago.

I don't own anything at all except my car. Which is a 1999 with a blue book value of less than $900. I do not own any real estate. That is why I don't understand the lien. There's nothing to lien against.

Expert:  cfortunato replied 6 years ago.

If you have no property that a lien can be placed on, your income tax liability can be discharged in a Bankruptcy.


I think this is what you wanted to know. If not, please let me know.
Thank you!


cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience: Bankruptcy professor.
cfortunato and other Bankruptcy Law Specialists are ready to help you