[dgdot]

Hello all.
I'm hoping someone can shed some light on some important decisions I need to make.
I filed Chapter 7 Bankruptcy in 8/01 that was discharged in 12/01.
The only things I was not able to discharge were:
$14,000 in state tax liens (Virginia Employer Withholding taxes) and
$10,000 in student loans from the Department of education (currently with a collection agency)

I'm finally in a position to start working on addressing these. I've been able to save a decent sum as well as having a steady income.
The options available to me, as I understand them, are:
1. negotiate payments (do it myself or hire a professional)
2. Offer in Compromise. (I noticed that there are many companies that promise to negotiate a final payment at a fraction of the original amount. Other things I've read indicate that tax liens are non-negotiable.)

I don't know where to turn for good, objective advice.
Should I hire a local attorney who specializes in Bankruptcy and Lien laws;
Hire a national company
negotiate a payment on my own.
Negotiate a settlement amount (at a fraction of the original amount)
Any advice is greatly appreciated. Thanks

[Anonymous]

First, you have to be careful when hiring somebody to negotiate your debts for you. How will this person be paid? If the person will collect a percentage of the savings they negotiate for you, there's little risk to you. For example, iff they negotiate a 50% discount on a $10,000 debt, and charge you a third of the savings as their fee, you end up paying two thirds of the debt and resolving the matter. But if they charge you a flat fee or an hourly rate, with no guarantee that their efforts will succeed, you have no assurance that they will make any serious effort to negotiate the debts down, or even that they believe it to be possible.

It is usually easier to work with a tax professional when trying to negotiate discounts on past tax debts. Ironically, when negotiating a discount on past tax debt it often "helps" to owe a great deal of money, as tax authorities frequently take the position that "anybody can come up with $5,000, but it is hard ot come up with $100,000" and thus give a bigger discount to the person who is seemingly less deserving. Student loan companies are, in my experience, quite unforgiving, but if you can find a service that works on a contingent fee or attempt to negotiate the debt yourself, as they say, there's no harm in trying.

[locke999]

hi

watch out for the @#$^&* at the tax office

if youv any cash in the bank they will lien it "now"

try to neg with them for a monthly payment "get it in writing"and keep your

cash under the bed.

moke