Quick BK Question

[Rnay]

What is the name of your state? Wisconsin

(Please, no judgemental types...? I already am beating up myself so I don't need more.)

At present I am having my weekly paycheck garnished by IRS and Student Loan folks. I am paying on state income tax Offer of Compromise/settlement also. Spouse's SSDI check about to get hit now as well. I filed an OIC before re. the federal but denied; I plan to refile, as since the original one I lost my job and ended up having to take one that pays much less, also our rent has jumped in cost, a lot. I may also refile with the state because of the changes. I am deliberating this, because I am fearful of losing the settlement OIC already in place. As I stated in previous posts, I have no choice but to go with Pro Se on OICs and BK (more on that in a second).

My question is this: I know I am unlikely to get the taxes discharged in BK and even less likely the Student Loans. But when I file for BK, do they (IRS and student loans) stop garnishment, even if temporarily? Just a little reprieve may help me get an Enrolled Agent's help. If it doesn't stop the garnishments for very long, at least I could catch up a couple utility bills.

Thanks!

 

[bigun]

Actually, if those taxes are 3 years old and meet some other criteria, they can be discharged in bk.
Talk with a couple of lawyers and get all of your options explained.

 

[Ladynred]

Have you tried to find a Taxpayer Advocate in your area ?? They do not charge - or charge less than an EA - and they are there specifically to help the public with things like OIC's and other tax problems.

 

[Rnay]

Question reiterated

Thanks to bigun and ladyinred for the responses. I do plan to list the taxes as they quite possibly meet the standards for bk. And I will try for hardship consideration on the student loans as it cannot HURT...But, I still am wondering whether or not the automatic stay upon filing bk will apply to garnishments for federal taxes and/or for student loans (I think they are called "Stafford", e.g. gov't ones not bank).

Thanks for the referral to taxpayer advocates. I will need to borrow a car to get to their offices, but from what you say it sounds like a good resource for me on all of this.

 

[Ladynred]

The automatic stay applies to ALL collection activities, even for taxes and student loans. The IRS and your lender for the SL's will be notified of your BK.