Bankruptcy And Taxes

Tax season is upon us! There are many questions you might have regarding taxes and bankruptcy.

Depending on the type of bankruptcy you filed, your taxes could be filed differently.

If you are thinking of filing for bankruptcy, you should ask your lawyer whether it would be best to file your taxes before or after you file for bankruptcy. This is because some types of debt are considered priority debt and can’t be discharged with bankruptcy.

These debts include: child support; student loans; drunk driving charges; fines stemming from the commission of a crime; and priority tax debts, including certain penalties (trust fund penalty), fraud assessments, and the trust fund portion of payroll tax debts.

These types of debt must be repaid in a Chapter 13 bankruptcy, and a repayment plan will be scheduled.

There are so many details involved in bankruptcy. It is always best to have a good lawyer on your side to help you through this process. If you have questions about your taxes after bankruptcy, or if you are needing help with your debt, give us a call. We are here to help!