Chapter 13 bankruptcy allows individuals and small business owners to repay their creditors over 3 to 5 years. Chapter 13 bankruptcy is available to wage earners, self-employed and sole proprietors. If you owe taxes to the IRS and/or Franchise Tax Board, they will be listed as a creditor in your bankruptcy case. The tax agency that you owe money to will receive electronic notices about your case from the U.S. Bankruptcy Courts.

As a Chapter 13 bankruptcy debtor you must:

  • file all required tax returns for tax periods ending within four years of your bankruptcy filing.
  • continue to file, or get an extension of time to file, all required returns.
  • should pay all current taxes as they come due.

Failure to file your returns and pay current taxes during a Chapter 13 bankruptcy may result in your case being dismissed, converted to a  chapter 7, or if the chapter 13 plan has not been confirmed yet, the case may be dismissed.

More information:

IRS’ Declaring Bankruptcy webpage

Publication 908, Bankruptcy Tax Guide

Publication 5082, What You Should Know about Chapter 13 Bankruptcy and Delinquent Returns

Need More Information?

At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we want you to get to know us. We want you to be sure that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.