Legal Question in Credit and Debt Law in Alabama

Do I pay taxes, do I file Bankruptcy- Help?
Due to lay-off, (Oct. 1999 to May 2000) we signed up for the ''Consumer Credit Counselor�s'' plan in Feb. 2000 to avoid bankruptcy. Dec. 2002 my brother died and I flew to Calif., more to see my Mom, as the deceased brother was the one caring for her. She had to be placed into a home as she had Alzheimer�s. I was laid off again this July 3rd, 2003. The last payment we made to ''CCC'' was June, so now we are behind and have been dropped from the program. The interest has jumped back up to normal and late charges are bumping up the balances. It looks like we have to file bankruptcy, BUT now Mom passed away August 12, 2003 so we can't file because the house is an asset (one third is mine) and it is large enough to pay off our debts. One of the problems is that I won't see any money from it for 3 to 4 months. I can't pay any of the bills on what we have coming in and the balances are getting larger. My brother that is still living in Calif. said he would get a loan on the house or sell it and send me my share ASAP. I also don't know how this works on taxes Fed., Calif. & Alabama - is it income? Thanks

Asked on 8/27/03, 1:26 am

Bobby Lott, Jr. Attorney at Law

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Re: Do I pay taxes, do I file Bankruptcy- Help?

The house will be exempt from income taxes since it came from an inheritance.

Answered on 8/27/03, 9:28 am

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