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KickStarter Campaign with Past Judgements? What to do? Bankruptcy or Incorporate?

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I am starting a KickStarter campaign to fund an art project. (I am an artist). I have credit card judgments as a result of prolonged unemployment, also one judgment from a past eviction. When my high paying corporate job went bad, and I couldnt find any work, I decided to pursue my passion in art.

Assuming my project is fully funded for $10,000.00 and that money gets wired into my account, is it at risk for seizure from my credit card judgements? That would be a problem, since the backers of the KickStarter are expecting original pieces of work in return for a contribution. I know there is a bankruptcy in my future, but I wasn't planning on doing it now. Would the courts allow the creditor to seize these funds? Should I incorporate, or bank out of state? I know I can file Ch 7. But My income is so low and my assets are so little, I'm basically judgement proof. Also, in addition to credit card debt, I have about $150,000.00 in student loan debt (not in default, in forbearance). I also owe the IRS about 5K (when I lost my job last year I had to live off my 401K so thats where the tax debt comes from) So filing bankruptcy wouldn't get rid of the student loan debt and taxes (not at this point of time anyway)

I'm in NY so the first $1750.00 in any checking account is exempt from seizure.

I have read about people using out of state banks to avoid creditor seizures. Of course a judgement debtor exam would reveal those accounts and render them worthless. Can anyone make any recommendations?

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If you are expecting to file for BK at some point it would be worth doing before you suddenly have 10k show up in an account since the monies are for art production.

 

However, if you have the ability to bring that kind of money in via kickstarter why not make an actual business of it and just pay the debt?

 

Kickstarter is just for project based ideas but there are others that would help with making a business of it.

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Well, the 10K in a KickStarter is probably delusional. But maybe $2500.00 is more realistic. But either way, I need to prepare for the eventuality of levy's and garnishments. There is probably a Chapter 7 in my future, I'm just procrastinating it as long as I can.

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Have you made a payment arrangement with the IRS? I would do this first ... with little income, you may be able to make a rather painless arrangement. Without a payment arrangement I'd be scared to suddenly have $10k show up in an account.

 

You didn't mention the amount owed on the chargeoffs, but the student loan and tax debt are not likely to be discharged in BK, so is BK really in your future?

 

If the bank account you are thinking of having funds wired into is the same account that you paid the creditors who you defaulted from, I'd be afraid that would be too easy for them to file a garnishment ...

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Have you made a payment arrangement with the IRS? I would do this first ... with little income, you may be able to make a rather painless arrangement. Without a payment arrangement I'd be scared to suddenly have $10k show up in an account.

 

You didn't mention the amount owed on the chargeoffs, but the student loan and tax debt are not likely to be discharged in BK, so is BK really in your future?

 

If the bank account you are thinking of having funds wired into is the same account that you paid the creditors who you defaulted from, I'd be afraid that would be too easy for them to file a garnishment ...

The taxes are old, over 5 years old so they should be able to be gotten rid of in BK. I realize I'm stuck with the student loans. I probably owe 50k in credit card. With NY, they are only allowed to file a bank levy I think once every 6 months. SO they got one shot at it. they may have already tried. The first 1750.00 is exempt in NY. But of course im concerned

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