Help Needed for a Self-Filer

[freshstart48]

What is the name of your state?What is the name of your state? GA

I considered filing Chapter 7 the first time 17 years ago when I had a few credit cards and couldn't repay due to a cut in salary for 6 weeks of maternity leave. I left DC with my six month old child, and all these years, I've managed to have maintain decent jobs and earn income making it possible for me to avoid bankruptcy until now. My son never received any child support and I've never married.

I lost my last full-time employment in October 2002 (was denied unemployment benefits, even after an appeal) and it was only with the help of my mom (and grace of God) that my son and I didn't become homeless. But now that I have moved out of my manufactured (mobile) home as of July, and still owe $13,840 on it, Chapter 7 is the only course of action I can see, therefore, I intend to file before the new law goes into effect in October. I didn't file during the past 2 1/2 years because I was told by an attorney that in order to file a Chapter 7, I had to be current on my bills (which I haven't been since losing my job, which was paying about $50K).

I just found a long-term temp job at the beginning of August but it's paying less than $10/hour. Until 2 weeks ago, I had NO income, other than the less than $200 a month that one of my online businesses has been generating since December 2004. I don't have any assets that can be liquidated, and only owe a few more payments on my car, which I intend to pay off in order to keep it. I've already pulled my credit reports and all of my debts appear to be dischargable (based upon my research).

My question(s) concern unfiled taxes. I have read that I need to provide income tax returns for the past 2-3 years, however, I stopped filing taxes back in 1992. I KNOW I need to fix that mess, but in the interest of time, can I just complete the necessary tax forms for the past few years and include them with the bankruptcy forms for filing purposes? Does the bankruptcy court check with the IRS to see if the returns were indeed filed? After I file Chapter 7, I will work on getting the tax mess taken care of.

If I had the money for an attorney to do the bankruptcy, I would definitely take that route, but as I stated, I've been without work for SO LONG and the income I'm earning now is just barely enough to cover the final utility bills I need to pay. I'm currently living in my sister's home in another county from where my mobile home is located, and whatever money I earn from this temp job is being used to help her with her living expenses and hopefully start some savings for me to get another place of my own (not to mention trying to repay my mom for supporting me and my son these past few years).

Since I plan to file the Chapter 7 myself, I've been doing searches on Google for information about self-filing of bankruptcy and have been thinking about getting [URL=http://www.form7.com]Form7 software[/URL] to make the task a bit more manageable. Does anyone have any experience using this software (or a competitor's that I should research)? How about any general comments/suggestions about self-filing a Chapter 7?

I thank you in advance for your advice.

[bigun]

You got some real bad advice. Nothing in the code says you must be current to file bk.
I'm gonna suggest you file the back taxes with the IRS. Just noway would I file for bk and try and run a bluff.
Somehow, someway you need a lawyer.

[freshstart48]

However, please know that it's not my intention to "try to run a bluff", I was simply trying to determine if I COULD submit the tax returns since they are required to be submitted when I file for bankruptcy. While I do plan to file the returns, doing so will automatically open up the doors to the past years when I didn't file and I'm not prepared for that just yet. Besides, my mother claimed me on her last 2 returns because she was providing support for me and my son. Her tax preparer suggested she do so in order to reduce her tax liability (she's retired and living on my deceased father's military benefits).

I've also been told that since I haven't worked in such a while, I shouldn't have any liability for the past few years, although I realize NOT filing for such a long time will probably result in penalties for failing to do so.

I'm not happy to learn that I got bad advice from a bankruptcy attorney (actually I called several and got the same advice), otherwise I would have filed bankruptcy shortly after losing my job. And while I realize and agree that an attorney would be best, I simply don't have $700-$900, at the least, to retain one to handle this for me.

But again, thanks for your input. Anyone else care to reply to my original post, particularly about the bankruptcy software?

[olgethorpe]

I'd suggest you pass on the software (most of those are nothing more than glorified EXCEL spreadsheets...you put a spreadsheet together yourself) and go pick up a copy of NOLO PRESS's book "How to file chapter 7 bankruptcy".

You might also want to contact legal aide, or whatever its called in your county, to see if there's a service available that will help with the paperwork.

I don't often agree with "bigun", but I really do think you need to get the tax filing taken care also. If you go online to [url]www.irs.gov[/url] and look for the "taxpayer advocate" section, you might get some help with that also. Obviously, you want to be very careful what info you give them, but they may offer some guidance.

[freshstart48]

I've reviewed the Taxpayer Advocate section on the IRS website and subsequently have contacted a friend of mine whose husband does taxes for a living. I've explained my situation to him and Praise God . . . he's agreed to help me . . . no charge!

Now to sort through all the paperwork . . . !