I am surprised how many people I have talked to don't realize that back taxes are dischargeable in bankruptcy providing certain time conditions have been met. (Look it up or consult with your attorney.)
The "good" thing about my Chap 7 is that approx. 90% of my debt was "Non-Consumer" debt ($70k in back taxes, $10K in consumer debt) and therefore many of the rules applying to consumer debt bankruptcy do not apply under section 741b, i.e. the "means test".
My first attorney kept telling me that the only way out was a Chap 13 - but thank The Lord, I sought a 2nd opinion and got a great attorney who investigated the matter and and now I have 26 days to wait until discharge - (fingers crossed) - and so far no objections.
Of course, one overwhelming factor in my case is that I have very few assets, no real property, no investments, etc. The only thing the trustee could pick on are some older project vehicles I own - I had valued them all at around $8k, the trustee came back with $11.6K - so I am giving him one of the vehicles to bring the amount back down to $8k which I will possibly get a 15% discount if I can come up with the money to pay the trustee within 30 days.
The trustee at my 341 made the comment "Well, you should have filed an Offer in Compromise with the IRS". I replied "I did file one, sir." His reply "And it got rejected, right?", Me: "Right.", Him: "Of course! They hardly ever accept them." I spent many many wasted hours filling out forms and providing supporting evidence and documentation concerning my hardship case (wife battling cancer, both of us unemployed, no health insurance, etc), only to be rejected by the IRS and ultimately having to deal with it by filing bankruptcy - now the IRS will get even less money than I offered in the compromise.
If you are dealing with back taxes, be sure that your attorney is well versed in the matter. My first attorney had no clue, the 2nd is extremely knowledgeable and has just the right mix of aggressiveness and confidence. I don't know what I would have done without him. It might behoove you to investigate the timing conditions for discharging back-taxes and stall off filing bankruptcy until you have met them all. You have to strategize - sometimes you need to do something right now, other times you have to wait, etc.
I have spent many many sleepless nights and endless discussions with my wife, worrying sick about these back taxes and the threatening tactics of the IRS, for the past 5 years or so and now, finally, it looks like relief is in sight!
God Bless and keep the faith - pray for a positive resolution. God has a way of working things out for the best, even though it may not seem like it at the time. ;-)
The "good" thing about my Chap 7 is that approx. 90% of my debt was "Non-Consumer" debt ($70k in back taxes, $10K in consumer debt) and therefore many of the rules applying to consumer debt bankruptcy do not apply under section 741b, i.e. the "means test".
My first attorney kept telling me that the only way out was a Chap 13 - but thank The Lord, I sought a 2nd opinion and got a great attorney who investigated the matter and and now I have 26 days to wait until discharge - (fingers crossed) - and so far no objections.
Of course, one overwhelming factor in my case is that I have very few assets, no real property, no investments, etc. The only thing the trustee could pick on are some older project vehicles I own - I had valued them all at around $8k, the trustee came back with $11.6K - so I am giving him one of the vehicles to bring the amount back down to $8k which I will possibly get a 15% discount if I can come up with the money to pay the trustee within 30 days.
The trustee at my 341 made the comment "Well, you should have filed an Offer in Compromise with the IRS". I replied "I did file one, sir." His reply "And it got rejected, right?", Me: "Right.", Him: "Of course! They hardly ever accept them." I spent many many wasted hours filling out forms and providing supporting evidence and documentation concerning my hardship case (wife battling cancer, both of us unemployed, no health insurance, etc), only to be rejected by the IRS and ultimately having to deal with it by filing bankruptcy - now the IRS will get even less money than I offered in the compromise.
If you are dealing with back taxes, be sure that your attorney is well versed in the matter. My first attorney had no clue, the 2nd is extremely knowledgeable and has just the right mix of aggressiveness and confidence. I don't know what I would have done without him. It might behoove you to investigate the timing conditions for discharging back-taxes and stall off filing bankruptcy until you have met them all. You have to strategize - sometimes you need to do something right now, other times you have to wait, etc.
I have spent many many sleepless nights and endless discussions with my wife, worrying sick about these back taxes and the threatening tactics of the IRS, for the past 5 years or so and now, finally, it looks like relief is in sight!
God Bless and keep the faith - pray for a positive resolution. God has a way of working things out for the best, even though it may not seem like it at the time. ;-)
Bankruptcy Wizard
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