a plea to not do what I did
In about 4 weeks the IRS and state will try to start collecting the $63,000+ amount owed to them. We have no credit cards to pay off the tax debt, and will have no way of making the minimum amount that I am sure the IRS will expect after they review my financials.
On paper I make a lot, if one doesn't add in the credit card debt, school loans from my wife, housing, schools, cars, and just plain cost of living. And we have no assets. Everything worth selling is already on craigslist for pennies, and there are no buyers.
We have cut back as much as humanly possible with the exception of moving to a cheaper home. Even that would not make a dent in the overall per monthly cost we face, and we don't have the money to move. I even take left over food from group work lunches so that my wife and I can subsidize and reduce the grocery bill every week.
So in about 4 weeks there is a good chance that my wages will get garnished, which could cause a chain of events that will most likely end up in me getting fired. Since we have no savings and live month-to-month, we will immediately lose our home and my kids could be on the street living out of our car.
As I go through this, I will post what happens, so that everyone out there can hopefully read through it and not do what I did.
This is all my fault, and there are no excuses for it.
I procrastinated, I didn't argue with living expenses that were beyond our means, and I underestimated the ramifications and amount of tax debt that could accumulate so quickly. There is a small chance I can get a few unsecured loans to pay off the IRS, and then at least struggle to pay private parties rather than the unfeeling freight train of the IRS.
It's not really fair to ask "What do I do now?"
I am normally not a religious man, but this keeps popping up and giving me some comfort: Jeremiah 29:11 For I know the plans I have for you, declares the LORD, plans for welfare and not for evil, to give you a future and a hope.
For God's sake get on top of IRS debt early before it snowballs and kills you, or at worst your whole family.
J
Unfortunately, this is the consequence of living beyond your mea
Unfortunately, this is the consequence of living beyond your means. If I were in your situation, I'd unfortunately give up the house and move to something smaller. If you want to avoid that route at all costs, then talk to family members.Ask your mother/father, your wife's mother/father, your brothers/sisters, whoever, for some money to pay off the IRS. You can offer them a 10,000 lump sum perhaps then monthly payments. You can also contact your mortgage company and request forbearance while you are paying off the IRS. They may or may not approve it. It ultimately seems to all stem from you having a house way out of your means.
clarification
Thank you for your advice. This is exactly the path that we are on.
Just to clarify a bit. We rent the home, and it is quite modest. The situation is not just as black and white as it may seem. On top of the obvious issues we brought on ourselves, we also faced a string of unforeseen cash expenditures related to medical bills, dismantling of a business, several moves, expensive family health insurance, etc etc.
But you are exactly correct - I and my family are facing the consequences of my actions, or inactions.
Have you considered filing bankruptcy for your credit card debt
Have you considered filing bankruptcy for your credit card debt / home, etc? It might be an option for you. It would leave you with only your student loan debt and your IRS debt.
Yes - bankruptcy is a good last resort option... but if I were y
Yes - bankruptcy is a good last resort option... but if I were you I would try first to see if you can get a forbearance on your mortgage for a while... usually most will do this. Some of them will destroy your credit though, as they will report you as not paying even though they will be taking your small forbearance payments, you are not technically paying the scheduled amount. But i'd imagine your credit is already not too stellar.
Dirving, the poster has stated that he rents. He has no mortgag
Dirving, the poster has stated that he rents. He has no mortgage.
What state?
Sorry to hear about your situation. That has got to be tough. My mother went through the same thing due to an accountants error.
I'm wondering what state you live in and how long you think it's going to take you to pay off the 63k?
Woops... not sure how I missed that. Anyway, you can try to work
Woops... not sure how I missed that. Anyway, you can try to work something out with who you are renting from. It's a shot in the dark though... all I can suggest at this point is family, family, and family. Try to get some money from your relatives.
Good luck with this situation. Let your honesty, your love for
Good luck with this situation. Let your honesty, your love for your family and your integrity guide you. This WILL work itself out. It may not seem so in the short term, but it will. You can end up a stronger person and family for it.
Remember: you are here for a purpose. I am forty years old and the last month and a half has prompted quite a bit of soul searching for my wife and I (financial issues - financial infidelity). Be open, be honest and work together. You can do this.