QUESTION
Will filing tax extensions hinder my chapter 7 bankruptcy?
Asked on Jul 24th, 2012 on Bankruptcy - New Jersey
More details to this question:
I filed tax extensions for the last 3 years, will that hinder my filing for Chapter 7 bankruptcy?
17 ANSWERS
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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The general answer to your question is "yes". Generally, those who file Chapter 7 bankruptcy proceedings must present tax returns for the four years prior to the filing at the creditor's meeting also called a rule 341 meeting. The creditor's meeting usually occurs within six weeks of the date of filing of the bankruptcy. Also, it is important to complete the tax returns in order to make an accurate statement of your income for the three years prior to the filing of the bankruptcy, a requirement of the bankruptcy schedules.
Answered on Jul 30th, 2012 at 3:31 PM
William C. Gosnell
Yes file your returns immediately. Failure to file is a federal felony and carries one year in fed prison and they don't do probation.
Answered on Jul 30th, 2012 at 9:42 AM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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The bankruptcy trustee will want a recent tax return. You did not say if you filed the returns, but if you have not you should file immediately.
Answered on Jul 27th, 2012 at 8:12 PM
The extensions will not make any difference. Taxes and interest on unpaid taxes, are both non dischargeable debts. The only part you can eliminate in bankruptcy are penalties, if any.
Answered on Jul 27th, 2012 at 8:10 PM
Bankruptcy Law Attorney serving Huntington Woods, MI
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Austin Hirschhorn, P.C.
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In order to get a discharge in bankruptcy your prior and current tax returns must be filed. You will need to bring your tax filings up to date or you will not be eligible for a discharge in your case.
Answered on Jul 27th, 2012 at 8:09 PM
Yes, sort of. The trustee is going to want to know if you have refunds coming and if they are enough that he/she could be entitled to them. This will not impede your filing but it could slow down your discharge. If possible do the returns before you file bankruptcy. If not possible, do them as soon after filing as possible. Be aware that, if you do not do them before and wait until after, you risk losing all of part of the refunds, if any.
Answered on Jul 27th, 2012 at 8:09 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Yes, you need to file your taxes before you file your bankruptcy. There are many tax and bankruptcy issues that are driven by time.
Answered on Jul 27th, 2012 at 8:09 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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No, as long as you have filed all of your returns before filing bankruptcy. I suggest you consult with a bankruptcy attorney to discuss the details of your situation.
Answered on Jul 27th, 2012 at 8:08 PM
Daniel James Wilson
The trustee will insist you file at least 2011 return.
Answered on Jul 27th, 2012 at 7:57 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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I would recommend that you complete the income tax returns before you file your bankruptcy petition. The trustee of your case will almost certainly want them.
Answered on Jul 27th, 2012 at 7:55 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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No. Filing extensions is done all the time. Income taxes due within the last 3 years are not dischargeable.
Answered on Jul 27th, 2012 at 7:55 PM
Criminal Defense Attorney serving Calabasas, CA
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Law Office of Bernal P. Ojeda
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No but you will need to explain and list any possible tax liability in schedule E.
Answered on Jul 27th, 2012 at 7:54 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes they should be filed with the IRS prior to filing for bankruptcy.
Answered on Jul 27th, 2012 at 7:54 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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That will depend on if you owe money to the IRS or if you have money to be paid. If you owe money to the IRS then the trustee will most likely not have an issue.
Answered on Jul 27th, 2012 at 7:53 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Bankruptcy take you as you are, but, depending on the circumstance, the results vary. You need to retain counsel and explain your total circumstances.
Answered on Jul 27th, 2012 at 7:52 PM
Bankruptcy Decision Attorney serving San Diego, CA
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Law Office of Daniel G. Shay
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In San Diego, we must provide most recently filed IRS 1040 to Trustee. Sometimes The Trustee makes Debtor file latest taxes to make sure any refund is exempt.
Answered on Jul 27th, 2012 at 7:52 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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When you file a bankruptcy in New Jersey, all pre-petition tax returns must be filed, preferably prior to the filing, but no later than 30 days into the filing. Failure to do so can result in you case being dismissed.
Answered on Jul 27th, 2012 at 3:10 PM