Thanks, Mr. Harrington Jr! We are almost 100% sure that we do fall in the 'judgement proof' category since we have no valuable assets and barely making our living month-to-month, with food stamp and other documents to back it up. However, we weren't sure if BOE tax we owed would also be resolved by bankruptcy or not. And if we are exempted and 'judgement proof', what is that really mean? do we need to file something to prove that we're judgement proof and would the debt go away? or at least don't bother us until we have above exemption level income? (we're well below exemption level right now)
Any advice would be very helpful, thanks so much!
You have assets and categories of income. If the assets are below a minimum and the income is of an exempted character, the "judgement proof" moniker you used might be applicable. There is no "blessing" on this and (1) it won't prevent them from dogging you and (2) it won't prevent accidents like "oops, I just levied your SS disability but we will return it real soon" scenarios.
I.e, no finality. You need to have someone look at everything. You talk as if destitute and destitute cases are the type the BOE may typically take, but I also know that your facts don't describe everything.
If you are living with the grown up child, they may be imputing his SALARY to your household income. Also I have no idea whether you have assets they can seize. You need to talk to someone in detail and hire them to do a complete analysis of ALL your assets and WHEN the tax arose and WHAT TYPE of tax is it, etc. Its quite involved.
Thank you again for your prompt and helpful feedback! Our child is already married and does not live with us. Upon reviewing your feedback, it sounds like being judgement proof does not mean the debt will dissolve. We're just wondering how the tax attorney can help us in this case and what would they try to accomplish? Local bankruptcy attorney advised us we should qualify for chpt 7 bankruptcy but does that affet this BOE debt at all? we currently have combined debt of 35-40k credit card debts + 10k line of credit debt. And about 10k debt with BOE.
There are tax rules on bankruptcy. Tax year due date 3 years ago, tax return filed 2 ago, assessment 240 days ago + compute the effects of tolling. You need to get everything together, lists of creditors, exact tax years, call for transcript explanation by BOE etc. You didn't say if there was sales tax equivalent liability, etc etc etc etc etc.
You will probably need $1500 for the bankruptcy plus about ~$300 for the filing fee.
That's a very helpful information. Our one last question is... so should we be fine just giong with the Bankruptcy attorney? or are we better off to work with a tax attorney or do we need both? Really strained on budget right now, so our main goal is to take of this issue as efficiently and as economically as possible.
In anyway, we truly appreciate ALL of your advices and precious time reviewing our request/questions! Thanks so much!!!