Taxes are an important consideration in bankruptcy, whether you owe taxes or think you will receive a refund. The answer on what will happen with your tax obligations or refunds depends on a lot of things – which chapter of bankruptcy you choose to file, how old the tax obligations are, when you filed your return (was it on time, late, or not filed at all?), how much of a refund you are expecting, whether you are filing your bankruptcy case by yourself or with your spouse. These are some of the considerations that you will need to discuss with your attorney before you file your bankruptcy case, because the steps you take can have drastic financial consequences for you. Dealing with taxes in a bankruptcy case is an area that takes some planning and strategy.
If you are considering bankruptcy, but are worried about how it will affect your tax obligation or refund, please contact Kimberly Stevens, bankruptcy attorney at 801-393-5555 for a free initial consultation.