Do I Need My Tax Return for Filing a Bankruptcy?

One of the fundamental eligibility requirements for filing either Chapter 7 or Chapter 13 bankruptcy is that you must be current in tax return filings. You cannot file for bankruptcy if you are behind on filing your tax returns. You can, however, file bankruptcy if you have filed your tax returns but you have not made all of your required tax payments to the IRS.

You only need your most recent tax return plus the past two years when you file for Chapter 7 bankruptcy. For expample if you are filing in 2012 you would need the tax returns for 2011, 2010 and 2009.  If you don't have a copy of your tax return then you can request a transcript from the IRS. The transcript is basically a summary of your tax return. If you haven't filed a tax return for the most recent tax years then you will need to do that before you are eligible to file for Chapter 7 bankruptcy.

At the time of your intial appointment with Discount Divorce & Bankruptcy we do not need to see your tax returns.  We only need the following items:

1.             Our questionnaire. 

2.             A copy of any law suits you have been served with. 

3.             A photo ID, such as a driver’s license. 

4.             A copy of your credit report if you do not know who all your creditors are. We recommend using Advantage Plus Credit Reporting, Inc., Cost for a credit report $33

5.             Our fee of $199.  (We accept all forms of payment except personal checks.)

 

Your tax returns will be need after your bankruptcy documents have been prepared by us.  We recommend Larry Bird (602) 375-9644) for preparing tax returns.

 

If you have not filed your taxes, your bankruptcy case can be dismissed before it really even gets going. If you have tax returns that you have not filed, take the time to get them filed prior to filing your bankruptcy case. It will save you time, money, and aggravation.

 

For more information call Discount Divorce & Bankruptcy for a FREE consultation.

The experienced family and bankruptcy document prepares at Discount Divorce assists clients throughout Arizona, including the cities of Ahwatukee, Anthem, Apache Junction, Avondale, Bisbee, Buckeye, Bullhead City, Camp Verde, Casa, Cottonwood, Douglas, Eloy, Grande, Carefree, Cave Creek, Chandler, El Mirage, Flagstaff, Florence, Fountain Hills, Gila Bend, Gilbert, Glendale, Globe, Goodyear, Gudalupe, Kingman, Lake Havasu City, Litchfield Park, Marana, Maricopa, Mesa, Nogales, Oro Valley, Paradise Valley, Payson, Peoria, Phoenix, Prescott, Prescott Valley, Queen Creek, Safford, San Luis, Scottsdale, Sierra Vista, South Tucson, Snow Flake, Sun City, Sun City West, Surprise, Tempe, Tolleson, Tucson, Waddell, Wickenburg, Winslow, Youngtown and Yuma.

Visit www.discountdivorcepro.com or call (602) 896-9020. Discount Divorce is located at 13817 N. 19th Ave., Phoenix, AZ 85023-6105.

Email: DiscountDivorce@msn.com

As always you should seek legal advice for specific issues like the one above before coming to Discount Divorce to have your documents done and processed so that your legal rights may be protected.

Difference Between Chapters 7 & 13 Bankruptcies

Going Bankrupt: Repayment of Your Debt

The biggest difference between Chapters 7 and 13 bankruptcies is the repayment of your debt. Chapter 13 bankruptcy involves a court-ordered repayment plan where a portion of your debt back is repaid to your creditors. In a Chapter 7 bankruptcy, there is no repayment plan and certain debts can simply be eliminated.

Length of Chapter 7 and Chapter 13 Bankruptcy Process

The second major difference between the two chapters is the time it takes to complete each chapter’s filing process. While a Chapter 7 bankruptcy filing usually only takes 4-6 months to complete, a Chapter 13 bankruptcy is a much longer procedure and usually lasts 3-5 years.

Protecting Assets v. Possible Liquidation

Your assets are protected in a Chapter 13 bankruptcy and the bankruptcy can even help you save assets that are facing foreclosure or repossession -- such as a house or car. Since a Chapter 13 bankruptcy in not a liquidation bankruptcy, you are able to keep your assets even if your states exemptions do not completely protect them. In a Chapter 7 bankruptcy, although it rarely happens, the Bankruptcy Court can liquidate your assets if they are not protected by your state’s bankruptcy exemptions. Your state probably has a specific exemption to protect a portion of equity in your house or car.

For more information go to DiscountDivorcePro.com