Can I include taxes & section 8 income in a BK CH 7

[jturk]

I owe the IRS about 3,000 in taxes for withdrawing my IRA.

I owe Section 8 3,000 for rent received after I no longer owned the property.
(sec. 8 is a govt. agency that pays the rent for poor people)

Now I want to include both of these in my ch. 7 bk. My question is, is this doable?

[justbroke]

You should be able to include the Section 8 debt in the bankruptcy, unless they obtained some sort of lien against the property!

As for the IRS debt, it will depend on several factors, but the first is the time test. The tax must be at least 3 years old, you filed the tax more than 2 years ago, and it wasn't assessed less than 240 days ago.

[frogger]

I owe the IRS about 3,000 in taxes for withdrawing my IRA.

I owe Section 8 3,000 for rent received after I no longer owned the property.
(sec. 8 is a govt. agency that pays the rent for poor people)

Now I want to include both of these in my ch. 7 bk. My question is, is this doable?

You were required to notify Section 8 fifteen days before any property was transferred out of your name.

Did you do that?

Did they continue to pay after that? or did you not notify them?

You owned the property until it was foreclosed or you relinquished control by returning the keys to the lender. What's the story?

[justbroke]

I see where frogger is going with this. If you fraudulently obtained money from Section 8... that may be non-dischargeable.

[jturk]

the property was in pre foreclosure so i quit claim deeded it back to the lender. once the transfer was made i did not notify sec. 8, i assumed the lender would because it was a private money lender. they paid me for 3 months into a bank account that was in the negative, so the bank got the money.

[justbroke]

Interesting, but you are probably still liable for the money... but may actually be able to discharge it in a Bankruptcy.

[jribe]

seems like you'd still owe it. Even though the "bank" got the money- you still benefited for it, negative or not- because it lessened the amount owed to the bank.

I would count on having to pay the 3k back..

the property was in pre foreclosure so i quit claim deeded it back to the lender. once the transfer was made i did not notify sec. 8, i assumed the lender would because it was a private money lender. they paid me for 3 months into a bank account that was in the negative, so the bank got the money.

[frogger]

the property was in pre foreclosure so i quit claim deeded it back to the lender. once the transfer was made i did not notify sec. 8, i assumed the lender would because it was a private money lender. they paid me for 3 months into a bank account that was in the negative, so the bank got the money.

You've got a couple of problems here.

1. You "assumed". Can't assume anything with Section 8. You signed contracts and you were given copies of the rules.

2. The bank got the money? No, you got the money because the accounts were in the negative. You had already spent the rent money, the Section 8 money just covered your shortage at the bank.

You need to talk to a bk attorney and let him know exactly what's going on. It may be possible to discharge this, but if you don't, it's not going to go away.

Remember that Section 8 is the government, so they can go after money that normal collection agencies can not. You must take care of this in some way or it's coming back to haunt you.