Posted on: 11th Oct, 2009 09:36 am
I am on SSDI as sole income. I own 50% of my house, my partner owns the other 50%. I currently have 16,000.00 credit card debt, and have just recieved a letter from the IRS saying I owe an additional $7400.00 from my 2007 return. I think it is impossible to retire these debts in "3-5" years with nothing but SSDI. I was told yesterday by a bankruptcy attorney simply to "get the house out of my name", and close any active checking accounts.....she said by doing this I would no have to file BK 7 or 13, because my SSDI was untouchable. My internet research indicates that SSDI CAN be garnished by IRS, and transferring ownership in my house at this point would be fraudulent. (I am scheduled for a Judgement Debtor court appearence on Oct. 21. Please help...am I getting bad information, is there more I can do, or is this BK attorney correct in her advise. I'm worried sick. Jimmy
Hi hoodoojimmy,
As far as I know, the Internal Revenue Service (IRS) is allowed to garnish your Social Security disability and retirement benefits for delinquent taxes. However, other creditors are not allowed to garnish your social security benefits. Also, transferring property just before the bankruptcy would be considered a fraudulent activity. If you transfer the property now, you should not file bankruptcy within the next 1 year.
Thanks
As far as I know, the Internal Revenue Service (IRS) is allowed to garnish your Social Security disability and retirement benefits for delinquent taxes. However, other creditors are not allowed to garnish your social security benefits. Also, transferring property just before the bankruptcy would be considered a fraudulent activity. If you transfer the property now, you should not file bankruptcy within the next 1 year.
Thanks