Confused at a lot of things, screwed by family members

[SMinGA2]

You need to find out what is going on - and not by asking your parents. They got you into this mess, and asking for their help so far has not gotten you anywhere. Sometimes in life you have to face the possibility that the ones you should be able to rely on - are not always reliable. (And you're still helping pay their way in life. They're adults, you're starting your life. Should not be this way.)

If its a CA state tax debt, someone/somewhere at the state tax assessor's office should be able to tell you SOMETHING. Or perhaps pull a copy of your credit report - probably there is reference to a judgment or lien. Or contact your bank - they should be able to tell you who drafted to garnish the account.

[davetedge]

Wow this is horrible. I'm sorry you're going through this and it's clear you're the only adult in the room.

Just remember: if you're going through hell, keep going.

First steps, get as much info as you can about the business debts. Wells Fargo should be able to tell you who levied the account and give you a reference/assessment number. Also, open a new bank account somewhere else, and consider living on a cash basis. You can't go back to banking with Wells.

I'm also concerned about how the business was set up. Did you incorporate and register with the CA Secretary of State or did you only go the Board of Equalization? You may be operating as a sole proprietor which means there are a lot more debts that you may be unaware of that have become your responsibility.

Try to make friends with the building owner to get some insight on what went down there. My guess is that your parents weren't paying rent for some time. If the owner's nice enough, he might give you whatever mail is piling up there. This will hopefully get you some more info on what business debts are owed and which creditors are aggressive about getting paid. Also find out if there's any inventory left, it's complicated, but it could help pay off some of the debts. Somehow you're going to have to get your parents to show you the books and you'll need to get someone with bookkeeping or accounting experience to help find out how bad it really is.

Also, contact the CA Secretary of State and change the "agent for service of process" address to some place where you can get mail (unfortunately PO Boxes aren't valid). This means any official communications from any California agency will get to you.

Sadly, this is going to cost you your time, your money, and the emotional toll of learning about all the things your parents didn't attend to when running the business. Unpaid debts, unfiled state and federal returns, and other compliance issues you've never heard of before.

I'd also meet with a few bankruptcy attorneys with business bankruptcy experience. In the least, they'll ask the right questions and show you the depth of the problem.

[lillymarlene]

This is awful. I feel for you. My Dad passed away 6 years ago, leaving me with a business buried in debt. I too, foolishly allowed myself to be kept in the dark for years, until it was too late. Many business bills, and the business checking account included my name. That and the bad economy forced me to close my retail business location; now I just basically operate from home. I filed a ch-13 in 2010, since bankrtuptcy really was my only option to deal with this mountain of debt.

It probably is a good idea to obtain your personal credit reports from the three big credit bureaus. Then as far as business debt goes, you may just have to go through your list of vendors and banks. Most of my business accounts, never showed on my personal credit reports.

It may also be helpful, to file a change of address form at your post office, for the business bills that may be piling up. If you don't want them sent to your home, perhaps consider opening up a post office box.

Good luck.

[ninjames]

I know it's been awhile, but a quick update is in order. Little progress has been made, other than one lawyer I talked to saying that it didn't seem like this was something that I could do a BK for. I've spoken to my dad more on the matter and the bulk of it all is sales tax. Looking up things for California, it looks like there's a ton of requirements for sales tax to be dischargeable in California that I don't meet.

I don't know when our returns were filed, I don't know where to start at all. On top of that, I can't afford a lawyer for at least another two months. And even then, how do I know a lawyer can even get me what I need? I don't have ANY paperwork. There's no way I can be taken out of being a responsible party, here?

The debt is enormous. 17K is more than I can fathom. It makes me not want to do anything. Makes me not want to work, because what's the point? Why save money anymore? Why work, because the state will eventually find a way to garnish my wages, won't they? I could not ever possibly get anything beyond paying more than $100 a month on this, and at that rate, it would be a decade before it's paid off. In debt until I'm 32 years-old.

Sorry for ranting. I'm just so upset and I have no idea what to do. Even if I contact another lawyer, what do I say? I don't even know how to begin. They'll laugh at me and throw me out at this point.

[PANSYFACE]

Here is a place to start - call the State of CALIFORNIA taxation dept and see if the sales tax returns were filed and not paid or not filed at all and a guesstimate was placed on the account. You should be able to get your California tax id number for the business and a pin or online access code. In nj we have a pin number and once you get that you can go online and check for the returns - it should tell you when they were filed and/ paid or unpaid. we can go wayyyyy back on the nj website so you should be able to see if Ca is the same. Start with one thing at a time -good luck.

[LadyInTheRed]

You might try contacting the California Taxpayer Rights Advocate: http://www.boe.ca.gov/info/contra.htm
Here's info on what they do: http://www.boe.ca.gov/tra/tra.htm

Also, try contacting your local county bar association for a referral to an attorney who will give you a low cost consultation. Describe your problem and they will refer you to an appropriate attorney. Tell them that your parents' business is in your name, but that you have not been involved in the operation and that the State Board of Equalization has started enforced collection against you for unpaid sales tax. Also mention that your parents are not being forthcoming with information about the business.

[BKAttyMI]

This sounds like a very sad situation, I'm not going to sugar coat it, your parents have SCREWED YOU OVER. Why you're still talking to them when they aren't doing everything in their power to fix THEIR mistakes is beyond me.

You need to contact a bankruptcy attorney and see what your "Chapter 13" bankruptcy options are regarding this sales tax. A Chapter 13 bankruptcy is a repayment plan. Unless you want to sue your parents, you're going to have to get some more income and start fixing this problem. It's very sad that your parents took advantage of your naivete. It's even worse that they aren't stepping up to the plate. Why on earth did this business need to be put in your name in the first place anyways? Since you signed the initial paperwork and even some checks, I'm guessing anything they put under your nose, you are unfortunately probably liable for all of this. GO to a FREE consultation with a Chapter 13 bankruptcy attorney worth their salt. If it were me, I'd cut off all contact with your parents and all financial support, they've just ruined a big chunk of your 20s.

[Drazil65]

My heart goes out to you and even though it is beyond belief that parents would burden a child with this situation, it has happened to you. So it has happened and now you take a deep breath and start at the beginning, talk to as many attorneys (free consults) as you can, ask all the questions and if they cannot help you then ask them for advice on where to go for help. Pull from every direction, you may have to speak on the phone to a CA attorney or 2 but what do you have to lose at this point? Hit it from every angle you can think of. Check with your local legal aid society to see if someone there can help you or lead you to the right party (perhaps a pro bono case?).

Now, with your parents they really should be helping you which means you will probably need to get tough with them in some way. Why not make them pick up the phone and start making calls in CA? They really need to assume responsibilty in some way and join in one the fun of "fixing" it or you may have to think about suing them for fraud, coersion, negligence or something along those lines to save your own butt. It may come down to something like that if it will get you out of this mess and I really hate saying that. You are much too young to have to deal with this mess for the sake of someone else even if that someone else is your parent. Good Luck!