Bankruptcy And Taxes: 4 Tips For Surviving Tax Season

Bankruptcy can be a life-saver for someone who is in debt. After all, it allows you have a fresh start financially. However, after filing for bankruptcy you may run into a few challenges. One of those challenges will likely relate to filing taxes. Fortunately, with a little help and some knowledge you can breeze through tax season—even if you just filed for bankruptcy.

Here are four tax tips for those who have declared bankruptcy:

1. Don't Skip Filing

After a bankruptcy, you will likely have an attorney handle a lot of your financial affairs. However, this doesn't mean that you are off the hook. Even though your tax attorney will likely file tax forms, doesn't meant that you don't have to. Regardless of the situation, you are still required to file your taxes in a timely manner. So make sure you file them every year and on time.

2. Pay Taxes

If you owe taxes, you are required to pay them. After you have declared bankruptcy, you are not allowed to acquire additional debts. You might think additional debts are restricted to credit cards, but they aren't. In addition to traditional debts, you cannot acquire any tax debts. So if you owe, make sure you pay off your tax debt. If you cannot pay it all off at once, set up a payment arrangement with the IRS so that you do not become delinquent.

3. Save All Paperwork

Another tip is to make sure you save everything relating to your taxes. You should save copies of regular tax forms, as well as miscellaneous forms. If you use any deductions, make sure you save copies of the receipts as well. Everything relating to your taxes and bankruptcy should be kept save in a file in your home or safe. This way you will be covered should any paperwork go missing or if you get audited.

4. Have a Plan for The Refund

Finally, make sure you have a plan for your refund. Your bankruptcy trustee will likely want to know how the money is spent, so make sure you have a plan. Also, make sure you keep copies of receipts for whatever you spend the money on. If you choose to save it, make sure you let your trustee know.

As you can see, filing taxes after declaring or filing for bankruptcy doesn't have to be difficult. With a little knowledge, and the help of an experienced tax attorney, you can easily get through the dreaded tax season unscathed.

For help from a tax attorney, click the link or do an online search. 

About Me

Law Information Everyone Should Know

Hi, my name is Jessica Hawkins and welcome to my law blog. My mom and dad are both attorneys so I grew up with a lot of law talk around the house. Even though I decided not to become an attorney, I still have an interest in the law. Plus, when I visit my parents, that's all they want to talk about, so I still learn what I can about the law so that I can join in on the conversation. I wanted to create a blog to inform others about various aspects of the law. In this blog, you'll also find out about the different types of attorney specialties and when it's best to consult an attorney. I hope that you find my blog useful and that it helps to answer your law questions.



Latest Posts

16 May 2024
Securities law, an intricate domain within financial regulations, governs the transaction and issuance of financial instruments. Engaging a securities

25 March 2024
Managing a trust can be a complex and time-consuming process, especially for those who are unfamiliar with legal and financial matters. A trust admini

5 February 2024
When an individual faces arrest, the immediate concern often revolves around securing release as swiftly as possible. Understanding the intricacies of