god I love the internal revenue service

Who would have thought that the IRS would turn out to be my best creditor?

Crazy, right?

They gave me a 120 day extention on the $990 I owe from 2005 and instructions on how to set up an installment plan for my back 2006 deposits. Sweet.

I’m very relieved right now. Not that I really should be, as I have alot of stuff going down the next few weeks, but just know the IRS won’t be seizing my bank accounts at least until July is a big relief.

Why would that be bad? Let me count thy ways:

1. If the IRS froze my bank account (not sure if they can do that, but my dad says they can), my growing income from my business might come to a halt
2. You don’t want to mess with the government
3. I met a IRS tax attorney this weekend at church….yikes!

So, I have until June 29th, 2007 to pay the $986 I owe from Q4 of 2005. That helps…now I just need to get my 2006 941 stuff figured out. I should have used Paycycle to manage my payroll earlier.

A general update

My father came to visit me this past week to look at my craphole of a situation and give me some fatherly advice (I have not, nor do I intend to ask him for $). It was nice to have his help, but he doesn’t share my optimism on the situation.

He basically thinks I am screwed and need to buy an hour with a bankrupcy lawyer.

I don’t want to go that route.

One thing he did suggest was checking out a DMP (debt management plan) for handling the creditors. I had thought that maybe I could just do everything myself, but I am getting behind on too many things, and this could be a good route. Anyone have thoughts on this? I’m assuming they do not do business debts, is this true?

Even if they only did my personal debt, between my 25K wells line, my 15K citifinancial personal loan, and few misc credit cards we are talking around 50K right there.

And if they could deal with my mortages…that would be awesome.

The House

So, I haven’t made payments on my mortgage for 2 months now….nothing for Jan or Feb on my first or second. In speaking with my first mortgage company they indicated I could “skip” two payments (feb and march), if I can pay january come the beginning of March. We will see…its going to be tight.

All my cash at the moment has been going towards Payroll for the business, my lease for the office, and bare minimum payment to SOME creditors. Only SOME.

The Bussiness – Some Good News

The good news is my business is booming now that I can focus 100% (well, minus the creditor distraction) of my thoughts and time on it. If only I had done this a year ago instead of trade away 150K….live and learn, right? Just hope I can keep living!

So, we are up to over 150 of our advertising packages sold, so this is my current montly income: $9,000/mo

BUT,

Current Expenses (newly calculated to include some advertising costs I’m incurring with the new growth in the business) are at: $12,500/mo

Yikes. So, I’m still short….but the gap is closing….I think I can maybe….just maybe close it this month. But then I have a TON of catch up work to do for my advertising clients who pay a montly fee…

Thoughts

I discussed the idea of doing a short sale on my house. I would have about a 15K prepay on the first, plus say another 10K in closing costs….BUT, my mortage payment right now is totally 4K a month. If there is anyway to get rid of that, I could make it for sure…well, not for sure. But I would have a better shot.

I have also thought about living at my office (we have an extra room that is just basically storage, and I could easily put a small twin mattress in there and sleep quite well), and renting out my entire house. This would be a net $700-$800 difference. I could then get $800 more a month from my house (to $2300/mo). So, that is an option.

I wish I could keep my house…but it is looking more and more like that there is no way. The problem is that my 2nd is at nearly 14% interest and its a 150K 2nd. That is huge. So, I’m paying $1500 a month, and that is all interest. Thought, advice here, anyone?

My Health

As for me….I’m holding up. There have been some rough days as of late. Some days I just want to give up, or not come into the office. But so far, I haven’t and I won’t. I’m often very exausted, more so than I should be, and I think this has to do my mind just never being able to rest.

I have started seeing a counselor. This was not my idea, (my paren’ts insistance) but now that I have gone twice, I think it will be a good thing. It’s going to be hard dealing with some of the issues that caused me to make such poor decisions, but I think I am ready to face them.

Thanks

I just wanted to say thanks to everyone who has given me helpful comments the past month or so. I really appreciate it. This is just a place for me to keep track of this giant mess I am in, but if I can get some good advice or support from it, that is great as well. Keep the comments comin’