Filing your taxes after bankruptcy
Filing for Chapter 7, Chapter 11 or Chapter 13 bankruptcy protection can often be a very difficult decision. No one plans for financial adversity. You may have have found yourself in this situation because of an illness or a job loss. But having a court grant bankruptcy protection is an opportunity for a fresh start. Now comes the time when you have to file your income taxes. Perhaps you have just filed, or prepared an extension. Maybe you are considering filing bankruptcy and are planning ahead for how this will affect you in the future. We are here to tell you that there is life after bankruptcy.
But here are a few things you need to know about how it will affect your income taxes:
1) You must still file your income taxes or an extension to avoid having your bankruptcy case converted or dismissed. You will also need to file a form 1041, which is an estate tax form and covers the bankruptcy estate.
2) If you have not yet filed your taxes, you might want to file before filing for bankruptcy.
3) Hire a bankruptcy attorney and keep him informed of any new income or debts you have incurred since your bankruptcy. Also, give him copies of your past 3 years tax returns.
A bankruptcy attorney is educated in the intricacies of protecting you and your assets, and ensure there are no additional problems when it comes time to file your income taxes. If you have already filed for bankruptcy in Miami or are considering doing so, please call an bankruptcy attorney at Adams Law, PA. Richard Adams and his team can help your with your bankruptcy case as well as advise you when it comes time to file your income taxes.