I need to raise Big Money in a short period of time. How to do it?

Another vote here that you look into a Chapter 13. I'm not sure I have a very good grasp of the circumstances of your case, Ken, but as of a couple of years ago, you could indeed file a Chapter 13 in the wake of a Chapter 7. It's called a "Chapter 20." Cute, huh?

A Chapter 13 is a "best efforts" bankruptcy for wage-earners that allows a debtor to allocate all disposable income to a court-approved plan for a designated period of time (usually 3 years). At the end of the three years, the debtor gets what's called a "superdischarge," meaning that everything that remains unpaid is wiped clean.

The "disposable income" that is devoted to the plan is everything that is left after anticipated living expenses. As a practical matter, the courts tend to be quite lenient about living expenses in the interest of fashioning a plan that is feasible. Also, I don't recall the details, but there is a provision that allows a debtor to make certain payments outside the plan. This potentially allows you to continue pay a valued secured creditor--usually a mortgagee--without triggering a default and the resulting loss of a home.

Often Chapter 13 plans are pretty sparse. The plan may provide for little, if nothing, to unsecured creditors. The lion's share of what is paid into the plan may go to priority creditors such as the IRS. However, my recollection of the rules regarding Chapter 13s is that even a priority IRS debt is "wiped clean" after the 3-year period, although I'm not altogether sure about that.

Please consider putting out the $200 to see a bankruptcy attorney about this.

First off, I really don't have much to offer as far as raising the money. However, I went through a similar situation on a smaller scale and I can tell you that if you truly are able to let go of any anger over the wrong doing, then you will be well on your way to getting through this. I know the here and now is about the money, but if it's tearing you up inside like it was me, then a big part of moving on is to free yourself of those feelings. I hope it all works out. I believe that justice is served in the end. I hope it gets served sooner for you and me.

Before retiring I was paralegal and since I had been away from it now for almost 4 years I had forgotten something! If the IRS debt is over 3 years old, it just might be discharageable!! As in gone forever -- with no repayment at all!

There are several "tests" that IRS debt must pass in order to be deemed discharageable and only a qualified bankruptcy attorney could answer that question and Kenneth, you should schedule and appointment ASAP!! If you filed in '97 he could file for another Chapter 7 and discharge these debts. You can file bankrupty again after 5 years (not 7 as most people think).

If they are not discharable, then you could file a Chapter 13 and the benefits of that would be that if freezes the penalties and most of the interest. It gives you a minimum of at least 3 years (maybe as long as 5 years) to repay the debt, along with any other remaining debts you owe at only pennies on the dollar. IRS is always a priority claim, meaning they would be paid ahead of any other debtor and as soon as IRS was paid off, you could dismiss your Chapter 13 and be out Bankruptcy at any time of your choosing.

Incidentally, with regards to the post about the Chapter 20; there is no such thing as a "Chapter 20". A Chapter 20 is the process of filing of a "Chapter 7" bankruptcy to discharge unsecured debts, followed by a "Chapter 13" bankruptcy to allow the debtor to catch up on mortgage payments (the term comes from 7+13=20). Some jurisdictions do not allow debtors to pursue this option.

That term "cramdown" is a term loved by the legal system and hated by the creditors. In fact, our state's Federal Bankruptcy Court's newsletter was called "The Cramdown". In reality, however, although the creditors can't protest because they don't like it that you filed for bankruptcy, they can dispute your Chapter 13 Plan; which is why you need a good attorney when you file for Chapter 13. It's a pretty complicated proceedure. It's almost an art form to devise a Plan to show you have enough income to actually pay your creditors (which you must do in order to file a Chapter 13) but that you don't have sufficient income to pay them too much!

__________________
"Challenges are what make life interesting -- overcoming them is what makes life meaningful."

Thank you Anne,
I enjoyed meeting you and your husband.
Thanks again and I hope you enjoy the cookware.

Kenneth in NC

UPDATE: We have lowered the total down to $25,000. It's slow but we are moving ahead slowly.

CONCRETE COWBOY: Yep the emotional drain is far worse than I imagined it would be. just the thoughts that "Uncle" gets away with being a jacka**.


Kenneth