$100,000 in debt - IRS and civil suit

[barelybroke]

A friend of mine says he owes $40,000 because of a civil suit that he lost and just shy of $60,000 to the IRS. I'm not sure if he owes the IRS in backpay or if it's for tax evasion or something but he said that every time he files backtaxes the amount is reduced. I really want to help him reduce his debt, but he doesn't have a bunch of money to shovel out to debt reduction services and I would like to get him on a plan to be done within 5 years. Please help, he's 46 and doesn't know what he wants to do when he gets older. His day job is a self-employed business that has not turned a true profit for him to truly sit back and be a business owner in 15 years. HELP....

(I can ask him for more information if you all need it. Just wanted to generate some answers now)

[snafu]

I suggest your friend stay away from all/any of those debt reduction services unless it's the government operated, 'Orderly Payment of Debt program at a clearly identified State office. Those 'debt write-downs,' get out of debt easily stories that sound too good to be true make a bad problem worse. If they ask for fees up front...that's the clue to run as fast and as far as possible.

I hope you're not giving your friend money, all that does is wreck your friendship. Your friend can likely take some steps to help himself but he needs to man-up, organize the paperwork and offer up information. What are his monthly expenses, what is owed, how much is owed and interest rate. Stop using credit and keep it simple using cash, take away his CCs [credit cards] and put them in a plastic bag in the freezer.

[disneysteve]

His day job is a self-employed business that has not turned a true profit for him

Without any more details, I would focus on this. If he is running his own business unsuccessfully, his best bet might be to pack it in, close the business, and get a regular job with a steady paycheck.

Do you have any idea how much he currently brings home?