Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law

My husband and I are in debt probably $40,000 plus another

Customer Question
Hello my husband and I...
Hello my husband and I are in debt probably $40,000 plus another $190,000 in IRS debt from 2011 -2014. We have approx $150,000 in equity on our home that we cant access because our credit is poor, due to my business failure and I was primary income.Can we file bankrupsy on any of the IRS debt? The majority is 2011 and 2012. We dont have the income to realistically pay a payment plan for that high of a figure. If we cant file bankrupsy but instead sold our house and used the proceeds to pay the IRS could we immediately file bankrupsy for the rest of our debt? Would bankrupsy court care that we just sold our house?One more big question. 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.
Submitted: 1 year ago.Category: Bankruptcy Law
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Customer reply replied 1 year ago
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.
Answered in 2 hours by:
10/5/2016
Bankruptcy Lawyer: LawTalk, Attorney replied 1 year ago
LawTalk
LawTalk, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37,855
Experience: I have more than 25 years of experience in the practice of law.
Verified

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:

  1. The due date for filing a tax return for which you owe taxes was at least three years ago.
  2. Your tax return was in fact filed at least two years ago.
  3. The tax assessment (the time when the IRS sent you notice of the taxes you owed) was at least 240 days ago.
  4. Your tax return was not fraudulent in nay respect.
  5. 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.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

I hope that I have been able to fully answer your question. As I am not an employee of JustAnswer, please be so kind as to rate my service to you. That is the only way I am compensated for assisting you. Thank you in advance.

I wish you and yours the best in 2016,

Doug

Ask Your Own Bankruptcy Law Question
Customer reply replied 1 year ago
Aren't we more likely to loose the house in bankrupsy with having so much equity and owing the IRS so much? If we file chaper 7 we loose the house correct because of the equity and how much we owe IRS? If we do chapter 13 which means if we keep the house we will have a huge payment to cover all our debt with IRS bundled in?
Bankruptcy Lawyer: LawTalk, Attorney replied 1 year ago

Hi,

Yes, if you go chapter 7 you'll lose the house because you can only protect $30,000 in home equity in bankruptcy.

You can still do chapter 13 and keep the house but you would have to pay at least $120,000 in taxes during the 5 year repayment period. So yes, you'll probably lose the house.

As you may not be aware, the Rules of JustAnswer specify that each customer ask one question in each question thread. These are new questions that you are asking. For new questions, the customer is asked to open a new question thread. I do sincerely ***** ***** any inconvenience this might cause you. You are a subscription member and it costs you nothing to open a new question.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please remember to rate my service to you so that I can be compensated for helping you. Thank you in advance.

I wish you and yours the best in 2016,

Doug

Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: LawTalk, Attorney replied 1 year ago

It is possible that your questions and issues might be better served by an in-depth conversation with me. If you are interested, for a very nominal charge I can offer you a private phone conference.

Please know that I answered your question in good faith, providing you with the information that you asked for, and I did that with the expectation that you would act likewise and rate my service to you. If I have already provided you with the information you asked for and you have no additional questions, would you please now rate my service to you so I can be compensated for assisting you?

Thanks in advance,

Doug

Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: LawTalk, Attorney replied 1 year ago

Hi,

Is there anything else I can assist you with today?

Doug

Ask Your Own Bankruptcy Law Question
Ask LawTalk Your Own Question
LawTalk
LawTalk
LawTalk, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37,855
37,855 Satisfied Customers
Experience: I have more than 25 years of experience in the practice of law.

LawTalk 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

2,672 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
CAN A CHAPTER 7 BANKRUPTCY DISCHARGED ON 12/09 BE OVER
CAN A CHAPTER 7 BANKRUPTCY DISCHARGED ON 12/09 BE OVER TURNED BY A $15,000.00 BREACH OF CONTRACT THAT ACCURED ON 3/08 THROUGH A CIVIL SUIT?… read more
FiveStarLaw
FiveStarLaw
Attorney
Doctoral Degree
477 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
26,811 satisfied customers
I have a lawyer who filed a chapter 7 for us and now wants
I have a lawyer who filed a chapter 7 for us and now wants us to ask for the 7 to be dismissed or converted to a 13. He's a nice guy but i have a bad feeling that he has made some mistakes. I need hel… read more
socrateaser
socrateaser
1,031 satisfied customers
I filed for bankruptcy and qualified for Chapter 7. In the
I filed for bankruptcy and qualified for Chapter 7. In the process the Trustee found a date left off on my Deed of Trust. He filed for an Adversary Proceeding and I received a letter today stating he … read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
My husband and I went through a Chapter 7 Bankruptcy which
My husband and I went through a Chapter 7 Bankruptcy which was final in January of 2006. Yesterday we received a 1099 - C from the bank involved showing a cancellation of debt as 12/31/2009 with no in… read more
Maverick
Maverick
Doctoral Degree
6,133 satisfied customers
Have to file a chapter 7 bankruptcy, What about parrots as
Have to file a chapter 7 bankruptcy, What about parrots as pets...no breeding...no breeding involuled. Also have 4 vehicles Chev p/u 2009, Chev p/u 89, Ford p/up 85, Dodge 74 sedan. Need three vehicle… read more
FiveStarLaw
FiveStarLaw
Attorney
Doctoral Degree
477 satisfied customers
Chapter 7 Bankruptcy in Utah. Now that I have filed for
Chapter 7 Bankruptcy in Utah. Now that I have filed for Chapter 7 bankruptcy what happens to my house? I am upside down in my house and have vacated the property. Does my house still go into foreclosu… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,811 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
843 satisfied customers
This is a bankruptcy question. Filed Chapter 7, made
This is a bankruptcy question. Filed Chapter 7, made payments to trustee, finished payments, scheduled this month for the discharge hearing. Problem: one creditor has a lien on our home. What if anyth… read more
FiveStarLaw
FiveStarLaw
Attorney
Doctoral Degree
477 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
2,672 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
17,996 satisfied customers
We filed chapter 7 bankruptcy in California with the intent
We filed chapter 7 bankruptcy in California with the intent on reaffirming the car.We are 90 days out with a report of no distribution and "awaiting discharge" on Pacer.We have $6000 equity in the car… read more
DrakeLAW
DrakeLAW
Juris Doctorate
843 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
10,212 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
10,212 satisfied customers
If you file a chapter 7 bankruptcy and I own a house free
If you file a chapter 7 bankruptcy and I own a house free and clear that's worth 15000 can I keep the house? if so do I have to claim it as an exemption… read more
LegalGems
LegalGems
Juris Doctorate
10,212 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
2,672 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
30,268 satisfied customers
After a Chapter 7 Bankruptcy, an Equity loan was reaffirmed,
After a Chapter 7 Bankruptcy, an Equity loan was reaffirmed, but only by the husband. The wife never signed. Does this mean that the loan company now has lost consent? In her not reaffirming the loan … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 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