BK question

[sambo427]

Ok, I need some advice. I am trying to help a friend that has all kinds of issues, and she is not sure what to do.
She filed BK ch.7 in 2000-2001, started over with a clean slate, so to speak.
Now, she has gotten herself overloaded again. She is behind 5 months on the mortgage, they are auctioning off the property on Feb 2,08.
Now, she also owes approx. 80K in past due taxes (payroll) from the past year or so. She is already having her checking accounts levied. Now, she is thinking that if the bank forecloses on the house then they will in turn pay the back tax bill, due to the IRS taking prescendant? Then, she wants to file ch. 7 again, and start over once again with a clean slate. Now, can she legally file ch.7 again, will the mortgage company nicely pay off the tax debt and leave a 100-200K negative balance (tax debt+negative property value=negative balance) and go on their way or is she living in a fantacy world? I am just trying to help her, I hope you can help me.

[FreshLikeADaisy]

Sambo, I'm sorry, I know you're just trying to help, but this sounds like something only an attorney can straighten out: taxes and bk are tricky, most cannot be discharged, some can. That, and I don't think you're getting the whole story from her (I could be very wrong, and I apologize if I am, but that's my gut reaction to what you wrote). The only taxes a foreclosure sale will take care of are the property taxes on that one property, not income or payroll or anything else. Also, the way you say "payroll" makes me think there was a business involved, which will complicate matters further. To get the correct advice on her specific situation, she needs to get some real legal advice, and go to the attorney HERSELF so that she gets legal advice based on accurate facts and not a retelling. (You could always go with her, you know. ) Many bk attorneys have free consults, so get as many as you like. I think this is the very best help you could offer her, to be honest: what help is it if you get answers that turn out to be wrong, only because she didn't tell you something crucial and you didn't know to ask? The attorney will know, and that's why I say take her to one (or several) for free consults, and then you're both sure. Good luck!

[sambo427]

Thank you for your response. I thought all along that this situation is more than she and I can handle. Your right she probably needs to contact an attorney ASAP before something else happens. Thanks again.