Im filing bankruptcy to wipe out my debt?
I have not filed my taxes since 2005 when I filed my 2004 wages. Can I still file even though that has not been done, or do I need to file before I actually meet w/ the atty to file for the bankruptcy? -desperate
If you file a chapter 13 you have to have your taxes filed for the last 4 years (or a valid reason for why you han’t filed), for chapter 7 you have to provide tax returns for the past two years, so if you haven’t filed those taxes you should file them.
You can meet with an attorney first but they will tell you to file your taxes.
June 15th, 2010 at 8:15 pmYou can file bankruptcy if you wish if you owe taxes or not. You will have to file all returns that are due before you can get a discharge.
Ask your attorney for advice about what you should do if there is a refund on any year. That aside, if you have a refund due for 2005 and have a balance due for 2006 or 2007, you should request that the refund be applied as an estimated tax payment for the next year. This will reduce or eliminate any penalties for late filing and late payment.
Income tax that became due and owing less than three years ago can not be discharged in bankruptcy. This means if you owe tax for 2005 or a later year, it will be there when you come out of bankruptcy.
If you file a Chapter 13, you can propose a plan that pays the tax and interest but not penalties.
June 15th, 2010 at 8:15 pmKeep in mind that you can claim BK on Student loans, Money owed to IRS, and im pretty sure child support payments too. Since you havent filed for a few years and depending on how much debt you have, your creditors might claim fraud on your part and the fact that you ran up credit cards when you knew you could never pay. Have you checked yet to see how much it will cost to file BK? I remember when i did it over 10 years ago, It cost me 350 dollars, but i went through a paralegal. Lawyers at that time were asking 1500 dollars, i dont know how much lawyers ask for today.
June 15th, 2010 at 8:15 pmYou should consider getting all of your taxes filed for years 2005 and 2006. You usually incur a penalty if you owe the government money and you file past the April 15th deadline. But if you have a refund coming, that might be money you could use to pay off some debts or maybe pay your attorney.That way, you won’t lose your possible refund to your creditors who you file bankruptcy with. I hope this helps you in making your decision.
June 15th, 2010 at 8:15 pmYou can still file your taxes, it will not have any effect on your filing bankruptcy. Federal, State nor student loans are affected by a bankruptcy.
June 15th, 2010 at 8:15 pmwithout some real time numbers it is had to tell.
understand ‘bankruptcy’ is expensive, does not erase tax bills, student loans or a number of other bills.
has lonnng term affects on ur live.
as for using an attorney to ask about ‘b’ that is asking a dog if it is hungry.
suggest visit dave ramsey .com to learn ur hard lessons from others bigger mistakes . it is cheaper easier faster less painful.
u need to address the IRS failure to file FIRST.
if cash flow is the real problem read ‘48 days to work u love’ d.miller to get a shovel so u can get out of ur hole.
June 15th, 2010 at 8:15 pmBefore the bankruptcy action can go forward you MUST file all outstanding tax returns. If any refunds are coming from those years the refunds will almost certainly become part of the bankruptcy estate and will be taken to pay off your creditors.
If any taxes are due for those years they probably will not qualify for bankruptcy relief but will be taken into consideration when determining how much assets that the bankruptcy estate has for settlement of any outstanding debts.
Bear in mind that there are a number of debts that cannot be expunged through bankruptcy including recent tax debts, unpaid student loans and unpaid child support. However clearing other unsecured debts will make it possible to clear those debts yourself since you won’t have creditors at the door demanding payment any longer.
Consult with your bankruptcy attorney BEFORE you do anything as timing of things can have a major effect on what is included in the bankruptcy estate.
June 15th, 2010 at 8:15 pm