Levy!!!!!!!!!!

iVillage Member
Registered: 07-30-2004
Levy!!!!!!!!!!
1
Sat, 06-04-2005 - 10:21pm

About three years ago I sold my house and took a large amount of the money and paid off my debt that I owed. I own a house today, however since I am debt free about two weeks ago my husband was issued a Levy and we owe the IRS $4000.00 for accounts we settled on with collection agencies! I did not know about this tax law and now I'm thinking I should have just BK'd everything, but instead I did the right thing by not making everyone else pay my debt. I've contacted tax lawyers and they told yes it's called unearned income?!?!? Has anyone else experienced this, because everyone I've talked to at work about this doesn't know about this tax law either.

I've been debt free for three years, and before I was in debt for 10!! Now I'm back in debt and really mad.!!! This all started with uninsured medical bills!




Edited 6/4/2005 10:22 pm ET ET by toiyabe
Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
In reply to: toiyabe
Sun, 06-05-2005 - 7:26am

Yep, sorry to say, any amount over $600 "forgiven" by a creditor is considered income.

Sarah