TAX DEBT
September 15th, 2009 by Questions
I have $60,000 in personal debt which includes $20,000 for my vehicle. I also owe over $100,000 in tax debt for unfiled returns for the last 10 years. I have never missed a payment on my personal debt, not once and have excellent credit. However, I have never addressed the tax debt and know I could never pay it. I think I should declare bankruptcy but I need my truck for work. It is secured through the loan and I need to know if I will be able to keep it. The book value is about $15,000.
Posted from: Ontario
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September 16, 2009 at 8:19 am, A licensed trustee said:
I’m sorry to burst your bubble, but if you haven’t filed or paid your taxes in 10 years then you have missed numerous payments and don’t have excellent credit. Your income taxes are debt just like any other. You simply haven’t been caught, but you’ve been living on borrowed (tax) money for years…
On a more positive side, assuming your payments on the truck loan are up to date when you file for bankruptcy, you will be able to keep the truck (as long as you maintain the payments) so you don’t need to worry about that.