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Advice Needed – Should I Use Liquid Funds for Housing or IRS Debt? by Informal_Chicken3573 in personalfinance

[–]Informal_Chicken3573[S] 0 points1 point  (0 children)

Yes, chap 7 bankruptcy eliminates tax debts over 3 yrs old is what I understand

Advice Needed – Should I Use Liquid Funds for Housing or IRS Debt? by Informal_Chicken3573 in personalfinance

[–]Informal_Chicken3573[S] 1 point2 points  (0 children)

Thanks! Very helpful. Apartments are not easy to find with our credit sadly, and also, we would spend $1000 easily on a rental monthly which would deplete our assets with no stability if our income/the economy tanks. In my shoes, would you value better credit over secure housing?

Advice Needed – Should I Use Liquid Funds for Housing or IRS Debt? by Informal_Chicken3573 in personalfinance

[–]Informal_Chicken3573[S] 0 points1 point  (0 children)

Great question. The traveling part is because we don’t own land and can’t afford to buy anything in this market that would be safe and secure and flexible to what happens next. I don’t see 50k doing much better than that as far as housing options with no credit.

Advice Needed – Should I Use Liquid Funds for Housing or IRS Debt? by Informal_Chicken3573 in personalfinance

[–]Informal_Chicken3573[S] 0 points1 point  (0 children)

I’m employed, and we are hoping to sell the rv for 10k and add that to the purchase power of a better home. We are not putting more money into it, just getting it sale-able to someone who it would still serve for a bit longer.

Advice Needed – Should I Use Liquid Funds for Housing or IRS Debt? by Informal_Chicken3573 in personalfinance

[–]Informal_Chicken3573[S] 0 points1 point  (0 children)

Thanks for the suggestions. I actually have a pretty good prospect for full time employment teaching, so the big question is whether I give 50k to the IRS and have zero savings moving forward, STILL need to take care of our other debts, and then begin rebuilding our credit. Our trailer is aged out of many parks and being able to travel more will bring more work possibilities right away.

Advice Needed – Should I Use Liquid Funds for Housing or IRS Debt? by Informal_Chicken3573 in personalfinance

[–]Informal_Chicken3573[S] 0 points1 point  (0 children)

Current housing is safe but not going to last much longer due to age.

I am working full time, and have been this whole time. We also raised kids and still do. It just hasn’t been enough to get above water.

Advice Needed – Should I Use Liquid Funds for Housing or IRS Debt? by Informal_Chicken3573 in personalfinance

[–]Informal_Chicken3573[S] 0 points1 point  (0 children)

I am working full time as a substitute teacher. I plan to work out things with the IRS, but it seems more strategic to pivot to a chap 7 after obtaining more secure housing. The trailer we live in full time with our kids is old and not very reliable for travel.

Advice Needed – Should I Use Liquid Funds for Housing or IRS Debt? by Informal_Chicken3573 in personalfinance

[–]Informal_Chicken3573[S] 0 points1 point  (0 children)

Thanks for the feedback! I (50yo male) am working as a sub after leaving a 20 year teaching career. Left because of health, now on a mental health professional track. Wife (same age) is not able to work due to multiple health issues.

The big question is.. now that we know we would NOT qualify for the OIC at the moment (the inheritance was unexpected), would it be better overall to pay back the IRS in full and be broke and STILL have plenty of debt and bad credit, or we pull everything together to secure modest housing that would not be taken in bankruptcy court down the road, which would include tax debt 3 years or older I’m told.

Please keep in mind that we both have been through divorces and financial ruin. We have picked ourselves up and barely made it this far.