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.
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