Is Bankruptcy the only option?

Date: Thu, 09/11/2008 - 10:52
Submitted by on Thu, 09/11/2008 - 10:52
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Hello,
History:
I have been in a CCCS plan for 2 years. I have been making my payments of $900 a month the whole time.
It has been hard and I have not been able to pay my rent without working for my ex husband for the rent money. He works out of town and I have stayed at the house while he has been gone to feed the animals and make sure our sons (18 adn 20) are not tearing things up. They all had a fight and the boys are moving out the end of this month. I can no longer accept $$ from him for many reasons.
2 weeks ago the ex recieved a notice from the IRS saying that he owes back taxes for 2006. In researching why this was we found out that the person (a local small business person) who has been doing both of our taxes made a mistake and put down the alimony payment as a debit to me. In other words..she said I paid alimony to the ex. It of course should have been an income. Well, this little mistake is going to cost me over $3500 plus of course and interest. There is know way I can do that now.
So, I called a BK lawyer. I meet the means test for my state and county. I can file chapter 7.
My name is on our house still even though he was awarded it in the divorce. The interest rate is 5% and the bank didn't want to accept a qcd as it would require a refi. I have an older mobile home on a leased lot. His name as well as mine is on that. My name is also on his checking account as he wanted me to be able to write checks for the house or kids if needed. (yes we get along)
My ??
1. I have told him to get me off his checking account ASAP since IRS could get into his account since my name is on it. Is it to late to protect his accounts?
2. What if anything will happen with his credit since we are still coowners of the house.
3. My next payment to CCCS is scheduled for next Wed. Should I make the payment? I can't do that and pay for an attorney and of course, my rent is due on the 1st. I have an appointment with the BK lawyer next week. The paperwork is being gathered and I should be able to pay him the $800 (his fee and filing fee) within 6 weeks if I don't make the payments to CCCS. When do I call CCCS and tell them I am filing BK?
4. What do I do now?


Well, I'm not an attorney, and I do agree that some of these questions would probably be better answered by a lawyer. However, I did file Chapter 7 recently, so I'll give you my opinions . . .

1. I doubt that it's too late to get your name off of the ex's checking account to protect his money from your debt. Since you say that the error was just discovered, the IRS should send you a bill before they attach a lien to any bank account. And even once they send you a bill, they usually give you several chances to pay it or make arrangements before they attach your account. However, since the IRS currently thinks that your ex is the one who owes them money, he should not ignore the notice that they sent to him because if he does, then they might decide to take his money. And, as a side note, it's my understanding that most taxes are not dischargeable in a BK, so I assume that you've talked to the BK attorney about that?

2. The house question, I'm not sure about. If he's making his payments, then I would think that his credit score shouldn't be affected.

3. My personal opinion is that if you are definitely filing BK, then I wouldn't make any more payments to CCCS, and I would tell them why. You need that money for rent and an attorney, and there's no need to pay them when those creditors will be included in your BK anyway.

4. Regarding what to do now, if you can no longer afford the CCCS payments, you could try debt settlement, but you would need to have funds available for that also. Other than that, BK is probably the next option.

Good luck!


Submitted by alias1958 on Thu, 09/11/2008 - 13:12

alias1958

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Also, if you do file BK, you will be asked if you made payments to any creditor of $600 or more within x days/months before filing.

I agree, if you have determined that you will be filing BK, then I would not make any more payments for your unsecured debts. (Pay those utilities, tho! :) )


Submitted by desperatelyseekingsanity on Thu, 09/11/2008 - 13:20

desperatelyseekingsanity

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