Q: I have a tax lien filed against me. I have no real property to attach. I owe another $39k I bills including g my car.
Our income is $4300 per month. Our expenses..credit cards, rent etc, car and life insurance is over $5k. Then everyday expensle, like food, gas, utilities. Would bankruptcy help me?
If you have filed tax returns in prior years, for those unpaid income taxes, then yes, a bankruptcy can help you. Unpaid income taxes, for returns filed more than two years and four months prior to the date of bankruptcy, are dischargeable, along with the interest and penalties accruing.
You need to meet the eligibility requirements for a Ch. 7 filing, and it appears that you do (assuming that $4,300/mo is below the median income for your area).
I represented a guy, who did sports shows on tv, who always filed tax returns, but hadn't paid income taxes for over ten years prior to our filing a bankruptcy for him. His debt to the IRS alone was over $1.5 million, so he was only eligible to file a Ch. 11. Inidividuals are not well-suited for the Ch. 11 process, and after about a year, the judge converted our case to a Ch. 7. Client was delighted, as that meant that 90% of his tax liability was discharged.
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