Ch 13 Bankruptcy Basics To Know

Tax obligations while filing Chapter 13 bankruptcy:

  • File all required tax returns for tax periods ending within four years of a bankruptcy filing.
  • During a bankruptcy, file or get an extension to file all required returns.
  • During a bankruptcy, pay all current taxes as they come due.
  • Failure to file and keep up with taxes during a pending bankruptcy may result in a case being dismissed, converted to chapter 7, or your Ch 13 plan may not be confirmed

Federal Taxes are not dischargeable in bankruptcy unless you meet the 3/2/240 rule

You can discharge income taxes that came due three years before filing for bankruptcy, as long as it has been at least two years since you filed the tax forms and 240 days since the taxes were assessed

Certain actions like filing offers in compromise, filing Form 911 advocate request toll the 3/2/240 rules, but installment agreements don’t

Amended returns, corrected returns and audits will affect the 240 day rule and your ability to discharge your taxes depending on when you file