Author Topic: Any tax attorneys in AH2? need advice (Read 251 times)

Ohio43 · « **on:** January 20, 2005, 09:23:24 AM »

In 2002 i filed for Chapter 11 bankruptcy along with my wife. After that, we seperated (I lived somewhere else) and remained married till her death in 03/04, and I moved back home after her death Well, somewhere along the way after the Chapter 11 she filed Chapter 13 (im assuming to keep the house) I wasnt aware of this filing. The house ended up in forclosure and sold in 04-04. (im assuming because she did not make the required payments to the chapter 13 filing). Now, yesterday I get a form (1099-C) from the home lender advising the remainder of the balance (thousands of dollars) had been cancelled, and I have to report the cancelled amount as Income on my 1040. ( I assume this meant that the house sold for less than the loan amount). I hate to ask this here but Im at the end of my rope. I barely make enough money as it is to support my 12 yr. old son, and really cant afford an attorney. Any advice given would be greatly appreciated. Thank you. Well, Ill say the amount cause I have another question. I received (1) 1099-c for myself for $27,000, and another for my wife in the exact amount. Assuming I will have to report the income, am I looking at $54,000, or just the $27,000? Couldn't even play AH2 yesterday cause Im so upset.

Maverick · « **Reply #1 on:** January 20, 2005, 09:39:53 AM »

I understand your situation about being very poor right now and not wanting to pay for an attorney. This situation does call for proper competant legal advice or it may cost you much more than the attorney's fees in taxes etc. by the time you get done.

You have more than just tax issues here. Since you were married the entire time the house should have been your property also unless it was hers to begin with. What about state taxes? The loan was in both of your names? Your credit records could very well be trashed over losing the house even if you were not living in it if you are tied to it financially as the tax situation you wrote about suggests. Are you in a community property state? Was your seperation informal or did you have a formal court document regarding assets and liabilities?

Frankly you need to forget about legal advice on a game BBS and get yourself to your area's leagal aid office.

Ohio43 · « **Reply #2 on:** January 20, 2005, 09:51:20 AM »

Thanks. State taxes, at least in ohio, are computed off your total income reported from the 1040..so yes, Im looking at paying state taxes on that amount too. We were informally seperated, and Im aware im responsible for whatever debts she incurs. Only big question was how she was able to reassume a chapter 13 for the house without my signature.
I was figuring that I would prolly end up going to an attorney, but this has me so upset I was hoping for maybe a "ray of sunshine" before I see one.

Rolex · « **Reply #3 on:** January 20, 2005, 10:23:39 AM »

I would also caution you strongly to not pursue this topic on this BBS. It is simply not the right venue. Almost every attorney will provide a free or low-cost first consulation and legal aid societies are easy to find.

I trust you can find competent, professional help to advise and negotiate a reasonable solution.

P.S. Please note that the correct spelling is 'separation.'

Muckmaw1 · « **Reply #4 on:** January 20, 2005, 10:24:55 AM »

Ohio:

Look into Prepaid Legal Services.

Its an inexpensive way to get representation.

Here's a Linky:

You may need to cut and paste it:

http://wserver0.prepaidlegal.com/Multisite/Multisite?site=hub&assoc=walterpoppe

koda76 · « **Reply #5 on:** January 20, 2005, 10:44:08 AM »

Maybe "halt" can help....tons of suff there....go to: http://www.halt.org

rpm · « **Reply #6 on:** January 20, 2005, 10:59:59 AM »

I don't think Pre-Paid covers pre-existing legal issues if I recall correctly. They are a great service otherwise.

Muckmaw1 · « **Reply #7 on:** January 20, 2005, 11:37:35 AM »

Quote

Originally posted by rpm
I don't think Pre-Paid covers pre-existing legal issues if I recall correctly. They are a great service otherwise.

I actually had a situation with a co-worker who suddenly found the need for a lawyer. He joined Pre-paid legal and was represented.

It's worth a shot.

Where else can you get a lawyer for $24.00 a month?

Ohio43 · « **Reply #8 on:** January 20, 2005, 11:52:29 AM »

Thanks guys , ill check into those places

Lazerus · « **Reply #9 on:** January 20, 2005, 12:04:07 PM »

Quote

Now, yesterday I get a form (1099-C) from the home lender advising the remainder of the balance (thousands of dollars) had been cancelled, and I have to report the cancelled amount as Income on my 1040.

First of all, I am not a lawyer.

I don't see how this money could be considered income if it was an unpaid balance on a loan. Did they say it had been canceled, or charged off?

You might want to talk with the bank first. It sounds like the house sold for $27,000 more than the loan. It seems to me to be the only way that you would have to report it as income.

koda76 · « **Reply #10 on:** January 20, 2005, 01:18:29 PM »

The IRS does consider it income.....but I think he has an out for the double amount as he was seperated and it is the same amount times two.....which is wrong.