Warning: Zend OPcache API is restricted by "restrict_api" configuration directive in /srv/users/serverpilot/apps/lawslookup/public/wp-content/plugins/tubepress/vendor/tedivm/stash/src/Stash/Driver/FileSystem.php on line 253
tax obligation consumer bankruptcy
Do I have to pay taxes during my bankruptcy case?
The tax obligations of the person filing a bankruptcy petition vary depending on whether you file a Chapter 7 bankruptcy or Chapter 13 bankruptcy.
The filing of a Chapter 7 bankruptcy petition creates a separate taxable bankruptcy estate, consisting of property that belongs to you before the filing date, and is completely separate from you as an individual taxpayer. The trustee is responsible for preparing and filing the estate’s tax returns (Form 1041) and paying its taxes. The individual debtor remains responsible for filing returns (Form 1040) and paying taxes on any income that does not belong to the estate.
The filing of a Chapter 13 bankruptcy petition does not create a separate taxable estate for federal tax purposes. You file the same federal income tax return (Form 1040) that was filed prior to the bankruptcy petition. If you run into trouble paying your post-petition taxes, look into negotiating an agreement with the tax man.
You must pay local property taxes otherwise it will probably constitute a default on your home mortgage.
Read more for related video clips.
YouTube responded with an error: The request cannot be completed because you have exceeded your <a href="/youtube/v3/getting-started#quota">quota</a>.