Living in Bankruptcy Confusion? Escape The Stress! Nothing But Blue Skies From Now On.

Will my bankruptcy affect my tax return?

Bankruptcy clients are incredibly concerned about their tax returns around this time of year.  Many personal bankruptcy clients depend upon tax refunds to get caught up on overdue power bills or other bills that have fallen by the wayside as they deal with their other financial issues.

The good news is, unlike in debt settlement, declaring personal bankruptcy will not result in forgiven debt becoming income and higher tax bills.

If you have already settled some debts before filing personal bankruptcy there is a form your accountant can complete to show that you are insolvent, evidenced by a personal bankruptcy.   Your accountant or one of our attorneys can assist you in preparing this form for filing with the IRS.

For more information check out our guide to taxes and your bankruptcy.

Interested in how filing personal bankruptcy can save you from the debt settlement tax trap?  Call our office and set up a free consultation with one of our bankruptcy attorneys at 732-302-9600.