Chapter 13 Bankruptcy and Tax Returns

When you file for Chapter 13 Bankruptcy in Delaware, in addition to the required paperwork and petition with the court, there are also necessary documents which must be provided to the Chapter 13 trustee. Various jurisdictions, districts, and trustees, can have different policies regarding the documents which must be provided, but every debtor, regardless of the jurisdiction or trustee, is required to provide the trustee with four years of their most recently due tax returns.

This requirement is different in that it specifically requires that the four years of federal returns have been filed with the IRS, and that they are for the most recent years the returns are due, not which have merely been filed. In other words, all debtors must have filed their tax returns due for the year leading up to the filing.

If a debtor files for bankruptcy without having filed or provided the trustee the necessary returns, their case can be delayed but are given forty-five (45) days to prepare and file the return to avoid dismissal of the bankruptcy without a discharge. If a case is ultimately dismissed without a discharge, a debtor can lose the benefits of the discharge, be out the costs associated with filing, and lose the protections provided by the automatic stay.

Legal issues and policy requirements regarding necessary documentation to be provided to a trustee often vary by jurisdiction and district. If you are considering filing for bankruptcy, it is best to speak to an experienced Delaware Bankruptcy Attorney. If you have questions about filing for bankruptcy in Delaware, contact our Delaware bankruptcy law firm today.

Delaware Bankruptcy information provided by Delaware Bankruptcy attorney Tiffany Poole.