I am seriously looking at filing chapter7, but my situation seems to
me to be very complex. I will likely hire an attourney, even though I
can scarcely afford one. I have read a couple of books and scoured
the internet looking for answers and have finally landed here, so I am
hoping to get a little guidance or advice based either on knowledge or
past experience. This could get long, so here goes.....

OK, I am married and have in the area of $60K in unsecured debt plus
about $50K owing in back taxes spread over 5 years, fed and state
combined.

I have been unemployed for 6 months and have been unable to pay
anything but rent and basic expenses from unemployment benefits and
loans from Daddy (embarassing as heck at age 40!)

The debts:
Maybe half of the $60K is credit cards. Some is a defaulted loan on a
timeshare (I know, I know, don't even say it!), some is an amount
owing from the disposition at the end of a car lease, and an
undetermined amount is going to be the difference between what a
finance company gets from the sale of my repossessed car and what I
still owe on it. Oh yeah and about $2500 is owed to the power
company!

The taxes are from a time when I was making ridiculously good money in
software consulting and totally mismanaging the tax situation, as well
as my spending, because I thought the money train would never stop!
Silly, silly man! Anyway, the largest tax amount is from 2000, filed
late but was due in April 2001, so I think it hits that magical three
year mark in April 2004. At an amount around $30K, I am thinking it
is worth waiting to file the BK. Thoughts?


So here's where it gets a little complicated....

I want to file individually, since my wife is not on any of this debt
whatsoever. We are also looking at filing for divorce in the next
year or so, after a separation (more on that in a moment) So I am
wondering what, if any effect it will have on her. Can a creditor
come after her at all? Will there be any debt that she will have to
assume after the divorce if I have been granted the Chapter 7?

I am about to start a new job (finally!) at a good salary ($75K), but
cannot file for BK until after I go through the security clearance
since they don't like it if you have filed BK in the last 10 years.
So I do not know how the new and decent salary will effect my ability
to be granted the discharge. It is still half of what I was making
before being laid off, but it seems like it could be a problem in
getting the discharge, even though my preliminary budget still shows a
barely livable situation.

Also, the new job is in San Diego and we live in San Jose. I will be
moving down there and my wife and two kids will be staying here, so
will the fact that I have to pay expenses in both places be taken into
account or is that just my problem? Does the separation matter at
all?

I was enrolled in a debt management program and that was going nicely
for me until the lay-off. I had about 9 months of timely payments and
then I had to stop for obvious reasons. Now none of my credit cards
will allow me to re-enroll even if I could make the payments.

For what it is worth, we have no assets. We rent our house, and I will
get a small apartment in San Diego, which could be a challenge with my
steadily declining credit rating. We now have a 94 Accord and 92
Sable. The Accord is financed, but in my wife's name only. The Sable
was paid for in full at $1500 and is a real P.O.S. We have no
savings, no stocks...nuthin!

OK, I know there is more, but I think I have gone overboard here in
supplying info. Thanks for reading if you got this far and I hope
there is some good info out there before I start paying for, or
incurring the debt for, a lawyer. It has actually been good to just
get this stuff out, so thanks for the therapy session as well!!!

Looking forward to any and all replies,
Butch

Chapter 7 is often a workable solution for those who have high debt and low
assets...Brett is correct, of course, you certainly should see an attorney
for detailed advice. I would note in passing that the IRS would probably
cut a deal with you to dramatically lower your tax debt. They settle for
cents on the dollar when the debt becomes next to uncollectable. If you
are ever going to file an "Offer for Compromise", you should do it now, when
your financial situation is its current condition.


*****

Rob Stumpf, Esq.

Stumpf and Ginter, Attorneys at Law
Practicing Bankruptcy in NY and NJ

visit us at www.online-law-firm.com
or email rob@online-law-firm.com


Disclaimer: No email or newsgroup communication is to be construed to
establish any sort of an attorney-client relationship, is not legal advice,
and is not a replacement for the advice of a competent attorney in your
jurisdiction.
"Butch" <bdority@sbcglobal.net> wrote in message
news:b7966caf.0308111114.98f6188@posting.google.co m... I am seriously looking at filing chapter7, but my situation seems to me to be very complex. I will likely hire an attourney, even though I can scarcely afford one. I have read a couple of books and scoured the internet looking for answers and have finally landed here, so I am hoping to get a little guidance or advice based either on knowledge or past experience. This could get long, so here goes..... OK, I am married and have in the area of $60K in unsecured debt plus about $50K owing in back taxes spread over 5 years, fed and state combined. I have been unemployed for 6 months and have been unable to pay anything but rent and basic expenses from unemployment benefits and loans from Daddy (embarassing as heck at age 40!) The debts: Maybe half of the $60K is credit cards. Some is a defaulted loan on a timeshare (I know, I know, don't even say it!), some is an amount owing from the disposition at the end of a car lease, and an undetermined amount is going to be the difference between what a finance company gets from the sale of my repossessed car and what I still owe on it. Oh yeah and about $2500 is owed to the power company! The taxes are from a time when I was making ridiculously good money in software consulting and totally mismanaging the tax situation, as well as my spending, because I thought the money train would never stop! Silly, silly man! Anyway, the largest tax amount is from 2000, filed late but was due in April 2001, so I think it hits that magical three year mark in April 2004. At an amount around $30K, I am thinking it is worth waiting to file the BK. Thoughts? So here's where it gets a little complicated.... I want to file individually, since my wife is not on any of this debt whatsoever. We are also looking at filing for divorce in the next year or so, after a separation (more on that in a moment) So I am wondering what, if any effect it will have on her. Can a creditor come after her at all? Will there be any debt that she will have to assume after the divorce if I have been granted the Chapter 7? I am about to start a new job (finally!) at a good salary ($75K), but cannot file for BK until after I go through the security clearance since they don't like it if you have filed BK in the last 10 years. So I do not know how the new and decent salary will effect my ability to be granted the discharge. It is still half of what I was making before being laid off, but it seems like it could be a problem in getting the discharge, even though my preliminary budget still shows a barely livable situation. Also, the new job is in San Diego and we live in San Jose. I will be moving down there and my wife and two kids will be staying here, so will the fact that I have to pay expenses in both places be taken into account or is that just my problem? Does the separation matter at all? I was enrolled in a debt management program and that was going nicely for me until the lay-off. I had about 9 months of timely payments and then I had to stop for obvious reasons. Now none of my credit cards will allow me to re-enroll even if I could make the payments. For what it is worth, we have no assets. We rent our house, and I will get a small apartment in San Diego, which could be a challenge with my steadily declining credit rating. We now have a 94 Accord and 92 Sable. The Accord is financed, but in my wife's name only. The Sable was paid for in full at $1500 and is a real P.O.S. We have no savings, no stocks...nuthin! OK, I know there is more, but I think I have gone overboard here in supplying info. Thanks for reading if you got this far and I hope there is some good info out there before I start paying for, or incurring the debt for, a lawyer. It has actually been good to just get this stuff out, so thanks for the therapy session as well!!! Looking forward to any and all replies, Butch

Watch out for the taxes, you have to go by the assessment date. And
you are right it is a magical day, so don't play any games with
counting days count months.

I have read cases were a matter of a few days, or filing a return
after IRS has already assessed can really screw you. Best to get a
good attorney and IRS transcrips.