Not logged in? Join one of the largest Debt Reduction Forums on the Internet! Join Now!   Latest blog post: John Oliver Talks About Student Debt

Advertisments:


Useful Links:

FTC Debt Reduction Advice
FTC Money Matters Website
National Foundation For Credit Counselling
Debt Reduction UK
MyMoney.Gov

Does filing for bankruptcy affect what is owed in a judgment or to the IRS?

Talk about declaring bankruptcy, the issues involved and it's suitability to your financial problems

Does filing for bankruptcy affect what is owed in a judgment or to the IRS?

Postby hreinn » Tue Aug 16, 2011 11:01 am

My mom is thinking about filing for bankruptcy since she's up to her eyeballs in credit card debt, not to mention a debt that my dad incurred that he now owes money to the IRS and money on a judgment against them for a small business that failed a couple years ago. I don't know all the details, but that's the gist of it. So her question is whether or not the bankruptcy will affect what she owes on both the judgment and to the IRS? I guess getting rid of her credit cards will allow her to pay the judgment and IRS off quicker if they aren't affected by bankruptcy, but she was just wondering because she is thinking about trying to file for bankruptcy on her own because she obviously can't afford a lawyer.
hreinn
 
Posts: 848
Joined: Tue Mar 22, 2011 7:13 pm

Does filing for bankruptcy affect what is owed in a judgment or to the IRS?

Postby farnleigh40 » Tue Aug 16, 2011 11:15 am

It depends. Contrary to popular belief, some taxes are dischargeable in bankruptcy. The analysis is complicated though, so an attorney needs to be involved.

She really should not attempt to file on her own - if an attorney is involved they may be able to get rid of taxes that your mom would otherwise pay. In the long run, the anything spent on an attorney may save your mom a lot of money!

Nearly all consumer bankruptcy attorneys offer free consultations. Take advantage of this to meet with one and get advice based on all of the details of your particular situation. You can find a referral at NACBA.org (National Association of Consumer Bankruptcy Attorneys).
farnleigh40
 
Posts: 862
Joined: Tue Mar 22, 2011 10:01 am

Does filing for bankruptcy affect what is owed in a judgment or to the IRS?

Postby pearson » Tue Aug 16, 2011 11:19 am

Generally IRS debt is not able to be discharged in a bankruptcy but you may be able to negotiate a settlement and put it on a payment plan.
pearson
 
Posts: 850
Joined: Tue Mar 22, 2011 8:49 am

Does filing for bankruptcy affect what is owed in a judgment or to the IRS?

Postby lind » Tue Aug 16, 2011 11:29 am

Judgement - probably yes.

IRS debt - usually not, but maybe, if it's old enough.

But if they're joint debt and your dad doesn't also file, they'll just revert to him.
lind
 
Posts: 903
Joined: Tue Mar 22, 2011 6:04 pm

Does filing for bankruptcy affect what is owed in a judgment or to the IRS?

Postby ardolf24 » Tue Aug 16, 2011 11:35 am

yes you can download informations and talk to advice free of charge by visiting this web site
www.cccs.co.uk
best of luck to your mother
ardolf24
 
Posts: 801
Joined: Tue Mar 22, 2011 2:17 am


Return to Bankruptcy

 


  • Related topics
    Replies
    Views
    Last post