The B word!

Without going into the misery of the collection phone calls and the abject misery that the IRS can do anything it pretty much wants. The abject misery came after looking at my anemic payroll deposit one fine day.

The first, necessary thing to do is panic! Hysterical panic!

Once that is out of your system, proceed.

OK, there is a simple fork in the road at this point unless emigration is an option. The first is that if you can handle the IRS minimum payment and work on credit counseling to get everyone paid, then do that but I have no clue how anyone could live on the IRS's minimum allowance, really, can't see anyone managing that.

Option 2, Bankruptcy!

I know ... the agony ... the word is even ugly

Bankruptcy is defined as "Being unable to pay ones debts" so I was, whether I liked it or not bankrupt.

But, I was going to apply for Bankruptcy protection, a sanctioned, legal method of handling the state of bankruptcy. Its a consumer protection law, a tool to use if you need it.

Lawyer visit....

I picked a lawyer off the web somewhat close to my workplace. I wasn't going to go around to my friends and ask advice - I was still coming to grips with the fact I was applying for bankruptcy protection.

Anyway, to make things simple - it's a piece of cake.

1. Hire lawyer (he may ask for an upfront fee of around $800, maybe more, maybe less.

2. He stops all the calls and charges immediately. (gloriously therapeutic feeling)

3. You get together all your papers on debts, file any tax years you didn't already and fill out forms. This was the worst part.

4. Your lawyer works out a monthly payment based off of your monthly income vs. expenses. This is a sane number compared to the IRS version. It accounts for being actually able to survive then takes the money left over and that is your payment.

5. You go to a hearing and your lawyer presents your case which is a rote affair (in fact the whole thing is) similar to going to the DMV except they swear you in and you have a lawyer.

6. You make your monthly payments.

7. Every year after you file taxes, they look at your income vs. expenses and work out that monthly payment again.

Repeat steps 6 and 7 for 5 years.

The whole thing is not too bad really. You will feel really good once you get it done as that worrying you were doing all the time goes away.

But don't get me wrong .... we have a long way to go. I dont intend to live poor for 5 years. That's no fun!

and you like fun, that's why you got in debt in the first place!