Tax Requirements and Advantages in Chapter 13 Bankruptcy

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Tax Requirements and Advantages in Chapter 13 Bankruptcy

For many Oregon and Washington families Chapter 13 Bankruptcy represents an opportunity to finally resolve past due tax obligations. The opportunity eliminate older tax debt altogether and pay back the remaining balance at zero percent interest over a three to five year period with no penalties and often at the expense of other creditors is a fine thing indeed. But you have to get the returns filed.

Ultimately within a couple months of filing, you may have to show that your federal and state returns have been filed for the last four years before your Chapter 13 Plan is approved. Moreover, the Trustee must receive your most recent filed tax returns at least seven days before your 341 hearing.

Perhaps the most tax related requirement that you must meet during the course of your Chapter 13 case is that you must remain current on your tax filings during the entire life of your Chapter 13 case. Every year you will need to send on copies of your returns to your Bankruptcy attorney so that they can be reviewed, redacted and sent on to the Trustee. Failure to meet this requirement may quickly result in the Trustee filing a motion to dismiss your case.

2013-05-12T22:07:34+00:00
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