Tax Issues

Many tax debts need to be paid back in full during the bankruptcy case, and that can sometimes push a Chapter 13 payment past the feasibility point.  There are other, time-sensitive rules about taking care of unfiled taxes. 

If you have unfiled taxes you should plan to get those returns filed in the first 120 days of your case.  The Bankruptcy Court may be willing to grant one 30-day extension, but the Bankruptcy Code does not allow more time than that to take care of unfiled tax returns in a Chapter 13 case.

The Trustee is entitled to receive a copy of the tax return for the most recent year that you filed.  This information must usually be provided at the beginning of your case, and at least seven days before you are set to appear at the meeting of creditors.  If you don’t provide this information the Bankruptcy Code says your case can be dismissed. 

A public education project of the National Association of Chapter Thirteen Trustees

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The materials on this website are for general information purposes only and should not be construed as legal advice, legal opinion, or any other advice on any specific facts or circumstances. You should not act or refrain from acting upon this information without seeking professional advice.