Tax Information Required
to File Bankruptcy
The Bankruptcy laws require you to produce and submit to your trustee a copy of your most recently filed federal income tax return. If you have filed an extension your previous year’s return may be sufficient (ask your lawyer for details).
In addition, if you file a Chapter 13, all prior tax returns - both federal and state - must be filed. Unfiled tax returns result in unknown liability. Since Chapter 13 functions as a three to five year payment plan, an unknown liability will make it impossible for the Chapter 13 trustee to administer a plan.
In both Chapter 7 and Chapter 13, you will be required to submit a copy of the past year’s federal tax return to your trustee prior to your Section 341 meeting of creditors hearing. In most cases, the trustee will not hold your hearing if a tax return has not been submitted.
If you have not filed a tax return for a prior year, please let us know. There are accountants and vendors who can help you recreate missing tax returns and the sooner you start this process the better.
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