Can I File For Bankruptcy If I Haven’t Filed My Taxes?

Filing for bankruptcy without having completed your tax returns can complicate the process, but it may still be possible under certain circumstances. The requirement for tax return submission depends on the bankruptcy chapter under which you are filing and the specific requirements of the bankruptcy court and the bankruptcy trustee managing your case. Here’s how the issue of unfiled tax returns generally affects the bankruptcy process:

Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy case, you are typically required to provide copies of your most recent tax return to the bankruptcy trustee at least 7 days before the meeting of creditors (341 meeting). This requirement allows the trustee to review your income, deductions, and other financial information as part of the bankruptcy process. If you have not filed your tax returns, this could delay or potentially jeopardize your bankruptcy filing. The trustee may request a continuance of the meeting of creditors until the returns are filed and submitted for review.

Chapter 13 Bankruptcy

For Chapter 13 bankruptcy, the requirement for tax return submission is generally more stringent. You are usually required to have filed tax returns for the four tax years prior to your bankruptcy filing date. Your most recent tax returns must be submitted to the trustee no later than the day before the meeting of creditors. Additionally, the Chapter 13 repayment plan often depends on your income as reported on your tax returns, making them crucial for formulating the plan. Failure to have filed these returns can lead to dismissal of your case or a delay until the returns are filed.

What Can You Do?

• File Your Returns: The best course of action is to file any unfiled tax returns before proceeding with the bankruptcy filing. This not only complies with the requirements but also provides a clearer picture of your financial situation.
• Seek Legal Advice: Consult with a bankruptcy attorney for advice specific to your situation. An attorney can guide you on how to proceed if you cannot file your tax returns before your bankruptcy filing and can advise you on any potential exceptions or how to request extensions from the court.
• Communicate with the Trustee: If you have already filed for bankruptcy and have not filed certain tax returns, communicate with your bankruptcy trustee immediately. You may be able to request additional time to file your returns. The trustee’s flexibility can vary, but clear communication is key.

Exceptions and Considerations

There may be exceptions or specific circumstances under which the requirement for submitting tax returns can be waived or modified, but these are rare and highly dependent on the jurisdiction and the trustee. For example, if you were not required to file a tax return for a particular year due to low income or other reasons, this should be communicated to the trustee with appropriate documentation.

While it is possible to file for bankruptcy if you haven’t completed your tax returns, doing so can present challenges. The smoothest path to bankruptcy involves having all required tax returns filed beforehand. This ensures compliance with legal requirements and aids in the accurate assessment of your financial situation, ultimately supporting your bankruptcy case. Always seek professional legal advice to navigate these complexities effectively.