How to File Bankruptcy with a Tax Return
You must provide copies of the last two years' tax returns when filing for bankruptcy. These tax returns serve as proof of your hard financial situation and provide evidence that you are unable to pay off your debt. You will also be required to provide copies of other financial documents, including your credit report.
Things You Will Need:
- Credit report
- Comprehensive list of current debts
- Bank and financial statements
- Proof of credit counseling course completion
- Proof of debtor's education course completion
- Complete the required credit counseling course. You must complete this course prior to filing for bankruptcy. In most cases, there is a fee for completing this course. If you cannot afford to pay for the course, the fee may be waived due to financial hardship. You must complete this course in no more than 180 days prior to your bankruptcy filing.
- Decide whether you wish to file Chapter 7 or Chapter 13 bankruptcy. Speak with an experienced bankruptcy attorney to determine which type of filing best suits your situation.
- Gather all of the required documents. This includes a copy of your credit report, a list of your current debts including the amounts, your bank and financial statements and tax returns for the past two years.
- Contact the local bankruptcy court to apply for bankruptcy. Once you complete and submit the application, the creditors will be notified. If the creditors continue to contact you, simply notify them that you are in the middle of bankruptcy proceedings.
- After filing for bankruptcy, you will be required to complete a debtor's education course. As with the credit counseling courses, you will be required to pay a fee to complete this course. The instructor will waive the fee due to financial hardship, if necessary.
- Understand that if you filed Chapter 13 bankruptcy, you will need to attend the creditor meeting. At this meeting, you will work with creditors to develop an affordable debt repayment plan. Once the meeting is finalized, you will receive a copy of the filed bankruptcy in the mail. This typically takes between 4 and 6 months.