Posted On: February 22, 2011
Bankruptcy and Tax Returns
Most bankruptcy courts and Trustees will require debtors to be current on filing past tax returns before the debtor can file a bankruptcy petition. (at least the last 4 years of returns) It is rare to see a Trustee allow a debtor to file a petition without being current.
In the rare instance that it does occur its usually in a Chapter 13. The Trustee may allow the proceeding to move forward after negotiations with an IRS or state agent to include whatever balance owed in the Chapter 13 plan.
Debtors cannot assume the Trustee will permit that. Therefore, debtors should be current on filing returns if they are thinking about filing for bankruptcy.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
