|Posted on October 29, 2009 at 10:15 AM|
Factually speaking...we need help. Each day that passes, many people are being affected by a collapsing economy, society, and lifestyle. It is now gone. It isn't going to get better, and it will never be like before. Not one person on the planet has any experience in dealing with this. Only certain individuals are able to adapt, and collect followers. If you stand back, and look from afar.
All day, every day I speak to people in trouble financially. I am hearing new, and unusual things from people. It's negative, unfriendly, involuntary, and depressing. People are in crisis, they have no avenues to go, and they can't qualify for any assistance. There is mass settling of debt going on everywhere, which inevitably will also bring very negative results down the road.
There is a lack of communication in corporate world, and the consumers are falling victim to all of the visible chaos. Once you settle a debt over $600.00 (six hundred dollars) you will be hearing from the IRS shortly thereafter. Steps, and measures taken:
Decision not to pay a debt: 1st stage.
Creation of the invitation to the collection/legal industry...to step into your life; 2nd stage.
Negotiation of settlements for less. 3rd stage.
IRS is notified. You are now taxed for Self Employment income. 4th stage.
The larger the amount...the larger the problem with the IRS...potential/possibility of jail time, if not paid. This will probably happen to more people who least expected it, because nobody communicated the ramifications of these types of transactions to them. I'm seeing it every day.
The IRS has the most power of all, and people really do not realize that by settling debts for less, personally invites the IRS into your life, in several ways. It will definitely yield a 1099. It will also cause an amendment of your taxes for the year, and if not paid they could potentially put you in jail. They've done it before. They have a larger percentage allowed in a garnishment on wages, and they have much more power to take your tangibles than a regular collection type situation.
The point to this is to educate people on what the actual right moves are in this economic situation. It is certainly not the right choice to settle if you're going to end up owing the IRS major money. That would be like setting yourself up for failure.
It's wise to sign a stipulation, for a reasonable payment each month. For all debts. Once you have secured arrangements on all debt, (must be within your income structure). It's best to avoid all judgments being entered against you. If you have no assets, like a home, job, bank accounts, stocks, bonds, investments, then you have nothing they can get. In that situation, you would then qualify for a chapter 7 bankruptcy. Which you "should" take advantage of.
I've gotten the IRS to lift Tax Liens for me to put a mortgage in place for a borrower. They will allow people to secure assets during a lien situation, because it will insure, and enhance the debtors ability to pay them back. It's actually smart to do it that way. Verses jail time, and stripping them of everything they own. Which they are also known to do.
I'm certain if people were educated on what will happen if they settle all their debts for less, they would not do it. It's safer, and better to make the arrangement with the collection agency/law firm than to bring the IRS into your life, who has the ultimate power to destroy you.
I've literally seen it all, and continuing to see much worse on a daily basis. It is alarming to witness what is happening to people right before my eyes. It is not being handled properly, and it is only going to get worse. We're only in the second phase of economic global failure.
The mass level of dysfunction, and depression is monumental in our history of humankind on this planet. It's historic value, and example of what not to do, (ever again), demonstrates the entire methodology has completely failed all people. This is a huge case of mis-management.
It's sad to think, (looking back on so many wrong moves made) that the right choices, and moves were an option at the time of many critical decisions along the way. Life for our people did not matter, nor was it part of anyone's concern in making critical decisions. We are now living the consequences of poor choices, and acceptance of empty promises.
Feel free to post comments or questions, this blog is for the purpose of education, and information for the people. For the Love of the Many...
May the strength and guidance of our Mother Goddess Earth empower you...Ama'