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92GTA

Hey everyone, I'm back!!!

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As you can see by my signature, I joined here back in 2007. By 2012 I had my credit FANTASTIC thanks to this forum and what I learned here from the kind people who shared their knowledge. I put it to work, and it work perfectly. I had a great job, a 56 Corvette, ZERO debt, was set to make an offer on a 5 bedroom house with my fiance and her 4 kids plus my 2, then.......

 

Sad to say that in 2013 I had a financial meltdown do to my significant other that was using meth. In less than 1 year I lost everything, I mean everything. I was sleeping in my car, every single card was maxed out, savings gone, all assets sold, and nearly $25K in IRS debt. The IRS debt was not due to the meth whore (as I call her now), but due to my tax lady getting caught in a federal sting and getting sentenced to prison for more than 1,000 counts of tax fraud she committed against her customers, me being one of them for 3 years.

 

Anyway, after being out of work the past 2.5 years due to the oil crisis and hitting another all time low, I now have a good job again. My income is BARELY enough to cover my monthly bills (my father passed and now I cover all of my mother's life expenses) and I only have $400 left over a month with no place to live, but I am determined to start fixing things again and make the best of what I have.

 

Here is where I am starting:

 

$6K owed in state taxes, $30K owed in federal taxes

(state empties my Chase every few months and the feds empty out my B of A yearly so I don't keep but $10 in each).

$40K+ in defaulted unsecured credit, 1 judgement (for my fiance's wedding ring, they don't know where I am working yet)

2 rental homes defaulted on (my fiance's was in my name too)

Less than $400 a month left over a month and no place to live.

(this is after food and gas but no other expenses are taken into account like clothes, emergencies, etc.)

All 4 of my credit reports frozen (and I lost my PIN to unlock my Innovis).

Zero saved, an old car that breaks down often, and 1 secured card maxed at $500.

Oh yeah, and no assets to sell.

 

Hopefully years from now I can look back on this thread and see that I successfully fixed things a second time. After everything going south after fixing it the first time I thought I would never be at this point mentally where I am wanting to even try a second time. I had just given up.

 

So that's my story. First thing first, I need to run my reports so I know precisely what I'm dealing with but at $10 a report each to unlock the big 3, I can't afford that right now. Then I need to setup a minimum monthly payment arrangement or my state and federal taxes, but then they will know where I work and that will half the only $400 a month I have left over as it is. I've already put focus on cutting my monthly expenses but as it is, my mother is all but starving, my dog is eating leftovers because dog food is too expensive, and all I can cut really is my cell phone and leave just my mother's cell phone on for emergencies. Finding a place to live is a top priority but I can't afford to even rent a room from someone on CL with what I have left over, especially if I make tax payment arrangements. I've been staying with the one friend I could for several months now and n a couple weeks I'll be sleeping in my car, then having to pay for more gas, take out food, and laundry which will only further drain me. I make too much for any sort of public assistance.

 

This is going to be tough. I'll keep you posted on my progress.

 

Thank you!

 

Alex

Edited by 92GTA

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As you can see by my signature, I joined here back in 2007. By 2012 I had my credit FANTASTIC thanks to this forum and what I learned here from the kind people who shared their knowledge. I put it to work, and it work perfectly. I had a great job, a 56 Corvette, ZERO debt, was set to make an offer on a 5 bedroom house with my fiance and her 4 kids plus my 2, then.......

 

Sad to say that in 2013 I had a financial meltdown do to my significant other that was using meth. In less than 1 year I lost everything, I mean everything. I was sleeping in my car, every single card was maxed out, savings gone, all assets sold, and nearly $25K in IRS debt. The IRS debt was not due to the meth whore (as I call her now), but due to my tax lady getting caught in a federal sting and getting sentenced to prison for more than 1,000 counts of tax fraud she committed against her customers, me being one of them for 3 years.

 

Anyway, after being out of work the past 2.5 years due to the oil crisis and hitting another all time low, I now have a good job again. My income is BARELY enough to cover my monthly bills (my father passed and now I cover all of my mother's life expenses) and I only have $400 left over a month with no place to live, but I am determined to start fixing things again and make the best of what I have.

 

Here is where I am starting:

 

$6K owed in state taxes, $30K owed in federal taxes

(state empties my Chase every few months and the feds empty out my B of A yearly so I don't keep but $10 in each).

$40K+ in defaulted unsecured credit, 1 judgement (for my fiance's wedding ring, they don't know where I am working yet)

2 rental homes defaulted on (my fiance's was in my name too)

Less than $400 a month left over a month and no place to live.

(this is after food and gas but no other expenses are taken into account like clothes, emergencies, etc.)

All 4 of my credit reports frozen (and I lost my PIN to unlock my Innovis).

Zero saved, an old car that breaks down often, and 1 secured card maxed at $500.

Oh yeah, and no assets to sell.

 

Hopefully years from now I can look back on this thread and see that I successfully fixed things a second time. After everything going south after fixing it the first time I thought I would never be at this point mentally where I am wanting to even try a second time. I had just given up.

 

So that's my story. First thing first, I need to run my reports so I know precisely what I'm dealing with but at $10 a report each to unlock the big 3, I can't afford that right now. Then I need to setup a minimum monthly payment arrangement or my state and federal taxes, but then they will know where I work and that will half the only $400 a month I have left over as it is. I've already put focus on cutting my monthly expenses but as it is, my mother is all but starving, my dog is eating leftovers because dog food is too expensive, and all I can cut really is my cell phone and leave just my mother's cell phone on for emergencies. Finding a place to live is a top priority but I can't afford to even rent a room from someone on CL with what I have left over, especially if I make tax payment arrangements. I've been staying with the one friend I could for several months now and n a couple weeks I'll be sleeping in my car, then having to pay for more gas, take out food, and laundry which will only further drain me. I make too much for any sort of public assistance.

 

This is going to be tough. I'll keep you posted on my progress.

 

Thank you!

 

Alex

 

Not that this matters now, but I have to ask. Why didn't you shut her down financially before everything was maxed out?

 

I take it you worked in the oil fields making good money? Things dried up, but no steaks in the freezer for the lean times? I know I'm being cynical, but I have intimate experience with oil fields. A lotta friends who lost everything in the housing crisis, got back on their feet by going to work in the oil fields. Made a ton money, bought a lot of toys, and not a nickel in cash liquidity saved hardly at all........Then boom, the price of oil drops, and of course many of the jobs drop. Amongst all the good times the SO other developed a meth habit. Am I describing the situation correctly?

 

State and Federal taxes are gonna follow you till eternity until they are paid. What state are you currently in? Sorry about your father.

Edited by TheVig

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Welcome back 92GTA. We won't judge you. The board will be happy to offer assistance from those knowledgeable

 

We are glad you rejoined us again..

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Welcome back, 92GTA. What a rough, rough patch - glad you're here.

 

Have you considered, or tried going for, an offer in compromise for your federal taxes? Regarding federal and state taxes, unless they get a lien, don't they SOL out after seven years either after the tax year or the year when the lien was filed?

 

Best of luck to you!

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Yes, look at offer and compromise for the IRS, your situation is one that might be considered,,the fact that drugs were involved, and it wasn't even you using them, can be considered.

 

Talk to a bankruptcy attorney,,,'

 

This may sound dumb, but remember you have your health,,,this is the type of thing that can be worked through

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Like other's have said look at offer and compromise for the IRS, Have a good friend that got the IRS to drop 90%

with what you said happen it sounds like you have a good case to get them to drop some off.

 

Like Andy also said talk to a Bano attorney ASAP.

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Yes, look at offer and compromise for the IRS, your situation is one that might be considered,,the fact that drugs were involved, and it wasn't even you using them, can be considered.

 

Talk to a bankruptcy attorney,,,'

 

This may sound dumb, but remember you have your health,,,this is the type of thing that can be worked through

 

Very good advice if you only have $400 a month to work with and no place of your own.

 

Depending on how old your taxes are they may be also dis-chargeable in bankruptcy.

 

I wish you the very best.

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Even before you are ready to do the offer in compromise with the IRS, sit down with them and do a financial review/ evaluation of your ability to repay. Go back as often as it takes and ask them to help you file any back years.

 

Do the same with the stat and set up a payment plan. You should be able to knock that out over a couple of years and your payments to the state will be factored into your ability to pay the IRS.

 

States generally don't forgive back taxes, but the IRS will if you work with them and jump through the hoops. The key is to be polite and earnest in your apparent efforts to make restitution.

 

Your best interest is to get those resolved before your situation improves and to continue to respond to all of their communications.

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With so little money available, I'd consider trying to get the IRS to classify your tax debt as currently uncollectable. There are some forms to fill out to get that classification approved, but once approved, the IRS won't try to drain your bank accounts for back taxes. If you get back to your former income level, then you can discuss a payment plan with them.

Edited by chicagorich

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Not that this matters now, but I have to ask. Why didn't you shut her down financially before everything was maxed out?

 

I take it you worked in the oil fields making good money? Things dried up, but no steaks in the freezer for the lean times? I know I'm being cynical, but I have intimate experience with oil fields. A lotta friends who lost everything in the housing crisis, got back on their feet by going to work in the oil fields. Made a ton money, bought a lot of toys, and not a nickel in cash liquidity saved hardly at all........Then boom, the price of oil drops, and of course many of the jobs drop. Amongst all the good times the SO other developed a meth habit. Am I describing the situation correctly?

 

State and Federal taxes are gonna follow you till eternity until they are paid. What state are you currently in? Sorry about your father.

 

 

I shut her down after about $10K on my cards, but I then had to deal with courts, attorneys, etc with her. She got her kids taken away, arrested, you name it. I was stupid enough to try to help her and even tried get custody of her kids myself. I should have just set her on fire tied to a stake and laughed. I was dumb, still in love at the time, wanted to save her kids lives, and I had never been around a drug addict before. Now I know better.

 

The job loss from the oil market happened a couple years after her. I do SCADA IT and had money saved. That's how I have survived 2.5 years out of work until now. But now it's ALL gone because for 1.5 years of that time I have been taking care of my mother as well.

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I consulted a bankruptcy attorney. He wanted $2,500 I didn't have, and said I make too much money to get a discharge and would have to commit to payment arrangements for 5 years or something which would leave me with like $100 left over a month. I didn't want to live like that and still don't. At this point everything on my credit is aged 3-4 years already anyway.

 

Far as the feds, a lady on the phone there I spoke with said they will only consider my income vs my expenses, not what I send to my mom every month to pay all of her expenses. My mother's care and expenses is about $2,700 every month alone. I was even paying on her 4 credit cards until 2 months ago when I finally had to stop.

 

Between my child support and my mother, I'm just broke until I can earn more money.

 

I just plan on agreeing to a minimum monthly payment arrangement with the state and IRS so they stop going after my bank accounts and so they don't garnish my wages at my new employer, other wise my mom will loose her home and medical and will be homeless too. Not good for a woman with Alzheimer's.

 

Eventually when I make more money I will then try to work with them but they only seem to care if I have a large amount of money to pay it off, which will be, never lol.

 

I have to wait another couple of months until I try to do payments with them tho because I need to try and save enough cash to rent a place first. I just hope they don't figure out that I work and where I work and do a garnishment before then.

Edited by 92GTA

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at the end of 2012 you were asking about filing BK. I assume you didn't then as you asked again in May 2014. It sounds like you've been through hell and treading water for years. It sounds like you need to file BK even if it is a 13. good luck.

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Addiction is a powerful thing, and most of us mere mortals have little ability to counteract it.

 

Besides the home, what other assets does your mother have? If your mother has Alzheimer's, is an assisted living arrangement a possibility?

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Far as the feds, a lady on the phone there I spoke with said they will only consider my income vs my expenses, not what I send to my mom every month to pay all of her expenses. My mother's care and expenses is about $2,700 every month alone. I was even paying on her 4 credit cards until 2 months ago when I finally had to stop.

 

 

It sounds like your mother could be classifed as your dependent. There may be government programs to cover her medical condition that might relieve you of that obligation, but absent that occurring, couldn't you make the case of her being your dependent.?

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My mother doesn't own a home and in the country she lives there are no assisted living homes and no government assistance. Long time family friends help keep and eye on her for me. I just send the money for all of her living expenses like rent, utilities, cell phone, food, gas, medical, etc. Most I pay online from here.

 

Maybe I will go speak to a bankruptcy attorney again. I just don't to be even more strapped than I am now making payments on old debt. Plus it would take me a long time to save to pay for the attorney.

 

My first priority is a place to live and getting the feds to not garnish my income which would put me and my mother on the street.

Edited by 92GTA

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I don't understand how you can only have $400 left over at the end of the month, and that does not include any housing costs, and not pass the means test. Plus, $2500 seems high. I would talk to another attorney.

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I don't understand how you can only have $400 left over at the end of the month, and that does not include any housing costs, and not pass the means test. Plus, $2500 seems high. I would talk to another attorney.

I'm assuming if he didn't have to pay his mother's bills, he'd have more left over. Unfortunately the IRS is not in the compassion business. So as far as they are concerned he can pony up and start paying it back. Bad situation to be in.

 

I doubt a BK judge and creditors would be all that interested in his mother's plight either. If children were involved, might be a different story.

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I am sorry for your troubles it sounds as one small thing happened and then the whole pyramid effect.

 

What I am going to say may not be the best suggestion and I defer to the experts on this site but I do have an idea on your BK.

 

I work nonprofit and I know that every bankruptcy court in LA and San Bernardino county in CA has pro bono attorneys on certain days of the week to help fill out your BK paperwork. I would normally not suggest doing it this way but it sounds as though you have no assets and nothing to protect at the moment so there doesn't seem a reason to pay an attorney the $2,500 with money you would have to borrow and so forth.

 

I don't know how your current job or income plays in a BK so don't know if you would need to protect that income and need your own personal attorney.

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Thanks for the suggestion. I also had someone tell me to forget the BK because my stuff is so aged and to just wait, but they suggested I go speak to a tax attorney who can specifically help me reach an agreement with the IRS so my wages don't get garnished. The tax attorney sounds like a good idea.

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The central problem will remain that in BK the judge will look at that $2500 that's going out of country and want a big chunk of it.

 

I will say that $2.5k seems high; the only upside to countries that don't pay for retirees is they tend to be very inexpensive places to live.

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How did the tax fraud thing work did you pay her the money and she just kept it or was she puling some kind of other fraud saying you had a bunch of kids or something and keeping the refund somehow? Seems if you had some record of all this you could get it wiped with the IRS and it would be on the tax lady.

 

It sounds like your mom needs to move either in with you or to some kind of facility. You have to take care of your mom but not to the point it puts you living in your car.

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She isn't over seas as a retiree, she has lived there since before I was born, I think she moved there in 1979. I have every single receipt for everything I pay for her monthly.

 

The tax lady was basically giving her customer s only 3 pages of their returns and on the other pages she lied saying we had business and took a loss, were going to college, etc etc. The returns all went to her then she would pay out her clients. Until the federal investigation become public after her arrest, none of her clients had a clue. The IRS sent me a letter saying what happened and that's how I found out. Plus once I received all of my transcripts for the years she did them, then I saw what was going on. The original IRS debt was only $19K for the 3 years and they agreed to waive all penalties and late fees IF I could pay it off all at once, which I couldn't. Now several years later, it's up to $43K with all of the IRS fees and interest even tho I was making payment on it for until just the past 2 years when I lost my job. The IRS said all of her clients would have to go after her in civil court to reclaim any of our money and that it was not their problem.

 

Moving my mother isn't easy. She has no SS from living over seas most of her adult life. She is living in the family home with all of the family belongings, if I loose that then my kids will have no legacy to be passed down to them. I am the only family member she has still alive and she mine, aside from my 2 teenage sons. She's only 67 and the doctors say the Alzheimer's symptoms she has is due to acute lead poisoning. She made Stained Glass for 30 years. Hopefully she won't get worse as she is undergoing treatment for the lead poisoning. Her moving is just not an option.

 

I'm going to try to find a tax attorney this weekend who can perhaps help me with the IRS.

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Glad you found your way back for support through this. I think your best bet is to be concerned with securing a stable place to lay your head before anything else.

 

I've been homeless & it is all-consuming...mentally, emotionally & physically. Once you have somewhere to call home, I'd go after the tax situation next.

 

I sincerely hope things turn soon for you & you find somewhere safe to stay. Keep your chin up.

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