First, this is not hopeless. My question at this point is, why not go back to the original bankruptcy attorney you spoke with who told you to wait until 2009. 2 years returns would only include 09 and 08 (usually, even if you were not required to file in 09); not to say everything is totally in the clear and above board, because you may have some “look back period” issues (check that out on the net). (Unfortunately, I’ve done a lot of research of my own 🙂
Do NOT touch that 401k it may be (very likely is) protected from creditors and keep your money out of bank accounts (even though a good attorney can likely force them to return any money taken as it is probably also “protected” by the simple fact that it is social security payments). The initial $50 taken prior you can just chalk up to par for the course and thank God it wasn’t any more of your much needed money.
Seriously consider going back to that attorney who told you to wait until 09, it sounds like he had a good plan for you to follow and he made you feel better; if not that attorney another bankruptcy attorney. Bankruptcy sucks at first, but has been ingrained in our system for us little people to get a fresh start which it sounds like you really need right now.
Hope you feel a little better, your situation is not hopeless or unheard of. Social Security takes 4EVER to finally get processed, but again, thank God its there for those who need it. Just wanted to reiterate how important it is to get some help from a good attorney. Every state is sooo very different in how they treat our homes, our bank accounts, just about everything is different (enough to drive a sane person crazy). Even though I have had family go through bankruptcy I am no way an expert, and I live in a different state than you, so…. most of what I had to learn probably only pertained to my area.
I’m not meaning to tell you what to do or give you legal answers. Anyway, jsut wanted to put that out there, cause I’m not a lawyer nor woul I wanna be one.