In a desparate situation

[MJJ3767]

I really need some help. I filed BK in April of 2002 and got a discharge. I worked hard to rebuild my credit score over the past 6 years but it seems I have only gone downhill. At one time I was working 3 jobs. I kept up with all my credit cards but in 2003 I received a letter from the IRS stating i owed $9000 in back taxes. These were taxes on a early withdrawal on an IRA that i took in 2000 so I could keep up with my bils. Then I lost one of my jobs in Sept of 2005 and I had to let my car go back to the bank. I didn't hear a thing until I received a letter from an attorney last week asking for $14,000 to pay this off. There is no way I can pay it. My yearly salary is only $22,000. I am not even making it as it is. I am trying to find a 2nd job just to pay the rent and utilities bills. Between the IRS and the car, I owe $24,000. I also have some small credit card bills but nothing major.

Right now I am in a desperate situation. I have been so depressed over this the last few days because I know that garnishment is soon to follow because of this car. I can't sleep, I can't think, I can't function. I just feel that life is worthless right now but I am a single mother and still have 2 children at home that need me. I've read with the new BK law you can only file every 8 years as oppose to the old rule of 6 years. Then I have read where you can attempt to file as often as you want but it may do no good.

Could anyone give me some advice on how to handle this other than finding the nearest bridge to jump off?

[HHM]

Do you have any other debt, right now, besides this IRS debt.

If the answer is no, then your are more a candidate for tax resolution then you are for BK.

Start doing google searches for Offer in Compromise.

[MJJ3767]

I would estimate my total debit excluding the taxes would be about $19,000. (including the car) I spoke to the IRS immediately and they took down my income/bills info. They could see from my figures there was no way I could make a monthly payment. The IRS has out a lien on my credit report and written it as "non collectable." An offer of compromise would not work either because I don't have the income to pay that. I do not have any assets other than a 4 year old car with $120,000 miles on it. The IRS never bothers me but I see a judgement and garnishment coming on the car.

[keepmine]

First thing you do is grab that pt job and raise your income. Also, are you getting child support?
They may or may not sue over the repo-that's out of your hands.
If they sue, you can file a Chapter 13. With your income and expenses, the payback would be nominal. Then, after 8 years from the 02 bk, you could convert to a 7.
You got options-don't let this overpower you.

[Flamingo]

Look in the phone book under Lawyers. Find one that gives free initial consultations. Call and make an appointment. Take with you to that appointment documentation of all you state above as to taxes, vehicle, etc. along with a listing of all your monthly payments, bills, sources of income, paystubs and a copy of your last tax return, state and federal. It's all free. You will be advised what you can and cannot do. May I also suggest getting to your state Social Services office and looking into food stamps and other things that can help you and your chidren (health care, etc.). Local church organizations would be more than happy to help you and your children out with food and clothing. At this point, don't hesitate to look for help until you can get yourself straightened out. The economy is bad and there are a lot of hurting people out there in debt with no jobs so many agencies and churches are understanding and have geared up to help those in need. Also, as another poster asked, where is the childrens' father? The State could investigate getting child support for the children. Do you have any friends/family that can help you or that you can rely on for child care, etc.?

[MJJ3767]

Maybe I didn't word that right. My children just turned 18. They are now in college with the help of pell grants and they work. Their child support stopped last year which has really been tough. I've never applied for government assistance, asked for help or even gave it a thought while raising my 3 kids. I did whatever it took to provide for them. There are people out there in FAR worse shape than I am that need it more than we ever did. Every morning I see young mother getting off the bus with a few children in tow taking them to school. She gets back on the bus and heads to work. We have a roof over our heads and food on the table. I have a car....barely! I just had to put $1275 into it yesterday.....all of my school loan. (I also go to school full time) I have a large family if things got so bad that we didn't have food, they would help.

So you see I am not destitute. I just want to be able to handle all that is coming at me now without having my wages garnished. I just feel like such a huge loser!!!

I think the idea of a Chapter 13 might be a good one. Also, right now I am reading about IRS offers of compromise.

[CindyLou]

also, can soneone chime in here...isnt there a 10 year limit on the irs collections?

Good thing is you can file chpt. 13 and with your income you might only pay a very small payment every month til you can convert. There is an answer here.

[MJJ3767]

You all are the best! I feel much better tonight than I did last night. I appreciate all the input.