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Who gets paid first as financial mess is addressed

Discussion in 'Other Debt, Collection, Garnishment' started by blukis, Jan 16, 2016.

  1. blukis

    blukis Law Topic Starter Guest

    Huge financial mess being dug out of.

    Self employed; "storm" has passed and receivables are re establishing.

    Began a credit card debt consolidation program- early stages

    Owe IRS FOR 2011-12-13. Was on a payment plan; applied to lower monthly payment and that was rejected for not having filed 2014. IRS AGENT LEFT A CARD AT MY DOOE AMD WANTS ME TO CALL TUESDAY.

    working on a mortgage modification but the length of time that has passed seems very long and "total due" is getting too large for immediate due or "else".
    I need help with who/entity gets priority or if it's too late

  2. army judge

    army judge Super Moderator

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    What the IRS is demanding has nothing to do with what your lender is demanding.

    If you desire to buy time, discuss the efficacy of a chapter seven bankruptcy.

    The automatic stay will buy eight or ten weeks.

    The IRS debt is likely not to be discharged, but it will keep the IRS at bay for a couple months.

    The BK could discharge the mortgage debt, again buying you time.

    Many people use the time to discuss a "deed in lieu".

    Some people are able to arrange a HARP or a refi.

    Talk to a BK lawyer.
  3. adjusterjack

    adjusterjack Super Moderator

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    You might be able to discharge IRS debts for 2011 and 2012 but you'll have to file your returns for 2014 and 2015 (even if you aren't able to pay it) and then wait to file bankruptcy until after April 15 2016. I happen to know that because my friend is going through the same thing with the same years and is following his bankruptcy attorney's instructions. If you file bankruptcy now I think the best you'll be able to do is discharge 2011.

    Meantime if you don't want to lose your house I suggest that your payment priority be to your home loan.

    Other debts can wait.

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