Deep in Debt from Business: Should We File Bankruptcy?
My husband owes back taxes and we talked to a tax attorney. He said to have me file seperately, and also we could probably work out an arrangement with the IRS.
My husband had a construction business and we lost everything. We are now renting. He owes 550 dollars a month to creditors. Our credit is horrible. We have 3 kids in college they are paying their way.
I dont know what to do first. We owe for back taxes from the company and we are paying $550 a month for loans he took out.
Is it possible to file for bankruptcy? I need advice. He has a steady job and I am working. We both are working 2 jobs just to stay afloat. I need help.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
Just to be more clear, taxes within 3 years of the bankruptcy are not discharged by chapter 7. You could pay them under chapter 11 or 13, but you won’t save any interest. Older taxes can be addressed by bankruptcy but not withholding or other trust fund taxes. So tax issues and bankruptcy for your other debts need to be addressed separately.
You certainly need to think about bankruptcy. However, bankruptcy won’t resolve your income taxes in most instances.