As reported by the Spokesman-Review, Idaho Rep. Phil Hart was questioned by a U.S. Justice Department lawyer, mostly in regards to his home, in his now second Chapter 13 filing in Idaho's U.S. District Court this year.
Hart recently lost his bid for a fifth term as the Idaho state lawmaker.
For the past 16 years Hart has fought over his income taxes with the Internal Revenue Service and the state of Idaho. Part of the fight has been trying to avoid loosing his home in a seizure by the government.
Hart began his fight against paying his taxes by filing a lawsuit that challenged the constitutionality of federal income tax – and he lost. He allegedly owes the IRS over a half-million dollars for back taxes, penalties and interest.
The government sought to foreclose on the home Hart lives in, however, the home has recently been listed in a trust as Hart's daughter's property.
The transfer of the home's ownership, according to federal authorities, is both "fraudulent" and a "sham."
Two days prior to his scheduled deposition in the foreclosure case, Hart filed for bankruptcy. The foreclosure was then put on hold for the bankruptcy proceedings.
The IRS successfully argued that Hart's debts were too high to qualify for a Chapter 13 bankruptcy. The bankruptcy, filed in May, was succinctly dismissed by August.
The foreclosure case was resumed, however, Hart filed for Chapter 13, again in an attempt to stop the foreclosure of him home, and a judge found that the filing was made in bad faith.
U.S. Tax Attorney Adam Strait questioned Hart in court about his living arrangements and how it came to be that he put the home in a trust for his daughter. Hart deferred approximately two-dozen questions to the attorney that was managing the trust. The trust attorney was not present at Hart's questioning.
The bankruptcy lists the home's worth at approximately $186,000, $600 a month was listed as rent or mortgage and $2,1000 was listed as his average monthly expenses.
When Hart leaves the legislature early December, his average monthly income, listed as $2,198, will be reduced by 50 percent. Hart claims that returning to his career in engineering should greatly increase his income once again.
Personal property, household goods, furniture, a legislative retirement account and half ownership of a holding company that owns a 2000 Audi he sometimes drives – accounts for an approximate total worth of about $28,000 according to Hart.
Debt to the IRS is over $564,000 and the state is owed over $62,000.
Hart has asked in his new bankruptcy plan that he be allowed to pay $106 a month for three years to end his debts. That amount, totaling $3,876, is less and one third of what he asked to pay the first time he filed.
Loosing your home in a personal bankruptcy is what everyone wants to avoid! Contact a bankruptcy attorney to help you with your filing today!