Legal Question in Bankruptcy in California

I have over $110,000 in credit card debt and an annual income of under $20,000.My life savings of $208,00 from an inheritance was stolen by a stockbroker committing a Ponzi scheme.He is now serving 9 years in a federal penitentiary.There is no money left.There were 20 victims and we are suing the larger broker where he was an independent contractor but of course they are denying responsibility and we have no SIPC claim since the larger firm is still around.Also,the IRS is claiming I owe $11,00 + for an IRA that was part of my inheritance but was never put into an IRA and was part of my money that was stolen

Here is my question.If I file for bankruptcy,I assume I can eliminate the credit card debt but what about the IRS ?Also,if we do eventually get a settlement or win in court,is that money at risk to be seized by the bankruptcy court?is there a time limit after bankruptcy where money received is no longer at risk?


Asked on 11/16/10, 11:48 am

1 Answer from Attorneys
Aimee Morris

You may want to make an appointment to go to your local IRS field office. Take your records and speak to an agent about the fact that you were victimized by the stockbroker, etc. Bring whatever evidence of the fraud to your meeting. See what you can get forgiven by the IRS, then file for bankruptcy protection for the remainder of your debt.

To the meeting with the IRS, bring your paystubs, a copy of your lease/mortgage paperwork, utility bills, car bill/insurance, etc., to show the agent how much you make, what you must pay every month, etc.

Good luck.

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Answered on 11/23/10, 2:47 pm


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