Today I have an appointment to meet with my accountant to see what the damage is going to be for the year. The filing of your yearly tax return, and for most, the tax refund that you will receive can have an impact on your bankruptcy filing. First, if you know that you are going to be filing bankruptcy it is important to meet with your bankruptcy attorney to discuss the timing of your tax return filing , what will happen to your tax refund, and when you should file your bankruptcy case.
Generally, I advise clients that if they are going to be receiving a tax refund that we should wait to file their bankruptcy case until after the taxes have been filed, the refund received, and the refund spent on appropriate expenses. If you wait to file your taxes until after you have filed for bankruptcy you will lose most, if not all, of your tax refund to your creditors through the bankruptcy process.
Also, if you are filing a chapter 13 bankruptcy, you must file your tax returns or risk having your case dismissed. While it is my experience that rarely will a bankruptcy case be dismissed if you are a month or two late on filing your tax return, if you wait too long your bankruptcy will be dismissed.
While I always recommend you meet with an experienced bankruptcy attorney to discuss your options, it is especially vital this time of year that you receive good advice. I offer a free bankrutpcy consultation where we can discuss your specific situation. I can be reached at (480) 648-8975.