IRS Bankruptcy

[SCGator14]

What is the name of your state? Georgia

I am in debt to the IRS. In speaking with a tax resolution agency their advice is I can declare Chapter 7 and a very large amount of the debt to the IRS will be discharged.

There will be a much smaller amount left which will be set up on automatic withdrawal.

My problem is this, I now live overseas and would want to continue to live here. My current debt is in excess of $50,000 and, upon filing bankruptcy, this amount will be approximately $7,500. But living overseas I need my passport. Am told my passport is currently considered "seriously delinquent" and this presents a huge problem. In order to file bankruptcy I believe I have to be in the USA and appear before the judge that will review this case.

Questions:

- Will I be able to return under these circumstances?
- By FILING bankruptcy will this release the passport from being "seriously delinquent?"
- By filing bankruptcy, MUST I appear in court or could the attorney do this "by proxy?"
- Will this filing of bankruptcy "solve the problems" or do I need to continue to let the agents I have through the tax resolution agency continue? I can pay this remaining balance over ABOUT 60 months and can have this amount ACH'd from the account so this can be corrected.

I have other questions but this is a VERY good beginning for what I need to know. I thank all for their honest and reasonable responses. Please refrain from sarcasm, this is a very troubling issue and would like to engage with those that are willing to help. The responses will be welcomed.

 

[adjusterjack]

My current debt is in excess of $50,000 and, upon filing bankruptcy, this amount will be approximately $7,500.

I'm a skeptic. Discharging 85% of your tax debt seems like hype designed to separate you from thousands of dollars up front only to be told later "Sorry, we tried, but we never did guarantee anything."

I suggest you discuss your tax situation with a tax attorney who regularly practices before the IRS and with whom all your discussion will be attorney/client privilege.

By filing bankruptcy, MUST I appear in court or could the attorney do this "by proxy?"

A couple of online resources suggest that you will have to appear before the trustee to answer questions about your bankruptcy. You might be able to do this remotely since Covid but it would be up to the court. To answer that question I suggest you discuss your situation with a bankruptcy attorney who practices near the court in which you want to file. He would be more likely to know, or be able to find out.

Am told my passport is currently considered "seriously delinquent"

"Told" by who?
"Considered" by who?
What, exactly, does "seriously delinquent" mean?
Are you a US citizen?

Others will want the answers to those questions before commenting.

Please refrain from sarcasm

About that. While I have managed to exercise some self control, others might not.

 

[LdiJ]

I'm a skeptic. Discharging 85% of your tax debt seems like hype designed to separate you from thousands of dollars up front only to be told later "Sorry, we tried, but we never did guarantee anything."

I suggest you discuss your tax situation with a tax attorney who regularly practices before the IRS and with whom all your discussion will be attorney/client privilege.



A couple of online resources suggest that you will have to appear before the trustee to answer questions about your bankruptcy. You might be able to do this remotely since Covid but it would be up to the court. To answer that question I suggest you discuss your situation with a bankruptcy attorney who practices near the court in which you want to file. He would be more likely to know, or be able to find out.



"Told" by who?
"Considered" by who?
What, exactly, does "seriously delinquent" mean?
Are you a US citizen?

Others will want the answers to those questions before commenting.



About that. While I have managed to exercise some self control, others might not.

Please see my reply below

 

[LdiJ]

What is the name of your state? Georgia

I am in debt to the IRS. In speaking with a tax resolution agency their advice is I can declare Chapter 7 and a very large amount of the debt to the IRS will be discharged.

There will be a much smaller amount left which will be set up on automatic withdrawal.

My problem is this, I now live overseas and would want to continue to live here. My current debt is in excess of $50,000 and, upon filing bankruptcy, this amount will be approximately $7,500. But living overseas I need my passport. Am told my passport is currently considered "seriously delinquent" and this presents a huge problem. In order to file bankruptcy I believe I have to be in the USA and appear before the judge that will review this case.

Questions:

- Will I be able to return under these circumstances?
- By FILING bankruptcy will this release the passport from being "seriously delinquent?"
- By filing bankruptcy, MUST I appear in court or could the attorney do this "by proxy?"
- Will this filing of bankruptcy "solve the problems" or do I need to continue to let the agents I have through the tax resolution agency continue? I can pay this remaining balance over ABOUT 60 months and can have this amount ACH'd from the account so this can be corrected.

I have other questions but this is a VERY good beginning for what I need to know. I thank all for their honest and reasonable responses. Please refrain from sarcasm, this is a very troubling issue and would like to engage with those that are willing to help. The responses will be welcomed.

Any IRS debt that is more than three years old can potentially be discharged in bankruptcy and more often than not IS discharged in bankruptcy.

Your passport can only be considered to be seriously delinquent if it has expired. It is possible that a hold has been put on it due to the tax debt, but the bankruptcy would not release it from being seriously delinquent, it would potentially release the hold from it so that you could renew it. Since you are located overseas it is highly probable that an attorney can represent you in front of the bankruptcy court. You WILL need an attorney for this, it is not a DYI project. The attorney will confirm what can and should be done, and when it should be done.

 

[doucar]

To file bankruptcy, you must file in the district in which you live or in which you have assets. A personal appearance is required, but with court permission, it can be done by telephone.

 

[SCGator14]

I'm a skeptic. Discharging 85% of your tax debt seems like hype designed to separate you from thousands of dollars up front only to be told later "Sorry, we tried, but we never did guarantee anything."

I suggest you discuss your tax situation with a tax attorney who regularly practices before the IRS and with whom all your discussion will be attorney/client privilege.

The IRS liability goes back to 2012 so only the last three years would be till active. And the last three years of liability is certainly workable.

I was told by a CPA that deals with IRS delinquencies these facts so I feel reasonably assured these are viable.

To do this myself I would need to check myself into a psych ward because this would not be effective, at all. I know my legal knowledge in this area is lacking, at best, and to trust a professional that knows this field is my only option.

And thank you for the "lack of sarcasm" in your response. I would rather deal with the facts, as harsh as they may be than to deal with harsh facts from those with an attitude. Thank you for your restraint!!!!

AND your reply, very helpful

 

[SCGator14]

Any IRS debt that is more than three years old can potentially be discharged in bankruptcy and more often than not IS discharged in bankruptcy.

Your passport can only be considered to be seriously delinquent if it has expired. It is possible that a hold has been put on it due to the tax debt, but the bankruptcy would not release it from being seriously delinquent, it would potentially release the hold from it so that you could renew it. Since you are located overseas it is highly probable that an attorney can represent you in front of the bankruptcy court. You WILL need an attorney for this, it is not a DYI project. The attorney will confirm what can and should be done, and when it should be done.

Agree about the attorney, 100%. This I can NOT do and WILL not do. Being a CPA, who would have thought, that there are people that believe they can do their own taxes and abide by the law and accuracy. Dealing with this, for years, I would be a fool to think I would be able to do this by myself.

I was going to return to the USA for a short time and I would hate to think the Immigration Service would confiscate the Passport in the airport. This SHOULD be able to be accomplished relatively easily and, would think that the bankruptcy protection laws would be in effect for passports too. To be set up on a payment plan for $150 per month would be simple and effective.

In doing this I would like to think I can return to living as an Expat with no problems.

Thank you for your response!

 

[SCGator14]

To file bankruptcy, you must file in the district in which you live or in which you have assets. A personal appearance is required, but with court permission, it can be done by telephone.

Very good.

Here's to hoping Ma Bell can assist in this endeavor!

Thank you for your response!

 

[SCGator14]

To file bankruptcy, you must file in the district in which you live or in which you have assets. A personal appearance is required, but with court permission, it can be done by telephone.

Thank you and I will do this.