Ch 7 - SS vs. Tax ID?

What is the name of your state?
Florida

I am currently considering filing Chapter 7. However, some of my debts were incurred via using a tax id as creditor identification number only. How does this get explained to the court? Do they care? Does it make a difference? Or should these items not be included in the bankruptcy and if so is that considered hiding information?

Please help.

[Ladynred]

Did you get this 'tax id #" for a LEGITIMATE BUSINESS or were you trying to get a new credit report ?? If you did it for a realy business, it would be legal, otherwise what you did is called file segregation and it IS A CRIME !! You might have more problems than the bankruptcy.

Thank you for your reply. I did start a legitimate business and I filled out the forms with IRS for a tax ID no. However, the business never grew or became profitable so I abandoned it all together. However, I did find that when I tried to establish credit for the business I utilized the tax id no# and was issued limited amounts of credit. I was under the impression that this is the way businesses establish credit. However, now that I intend on filing a chapter 7 there is one document that I read at the bankrupcty court online that request social security number(s) and I dont know if to add the tax id number or just file for the items that are not established via the tax id. All items are listed on my credit report so the question is will that the court look at my credit report and question the other items that are not included on the bankruptcy?

With regards to your statement on file segregation - what is it? and how does one identify it? You said it was a crime - in what way? and should I be concerned? How do I prove that I did not commit a crime?

Please help - the now seriously worried and concerned

[Ladynred]

Ok, you have nothing to worry about Getting a tax id # for legitimate business purposes is perfectly legal - you're safe.

The courts nor the Trustee will look at your credit reports. Just list all debts that you are personally liable for and it should cover it all. Without digging out the forms though, there's probably some place where you should list the Tax ID #.

File segregation - is the use of a tax id # by an idividual to obtain a 'fresh' credit report. It is illegal and you can be prosecuted for it. The FTC explains it best here:

[url]http://www.ftc.gov/bcp/conline/pubs/credit/creditid.htm[/url]

Thank you for your information. You have been so helpfull.

I just wanted to let you know that I looked all over the bankruptcy documents and could not find a section where I could list the tax id. Also, if the debts were incurred via a business then maybe I would not qualify for chapter 7 - would I have to do some type of business bankruptcy instead? Or can an individual file chapter 7 as a consumer and as business at the same time?

Still slightly confused - please help

[Ladynred]

Were you personally liable for the debts of the business ?? If so, then Ch 7 will still work and the debts can be included. What type of company, how was it classified ?