Macon Georgia Bankruptcy lawyer – Tax

Macon Georgia Bankruptcy lawyer – Tax

Tax debt and bankruptcy in Macon Georgia

Bankruptcy case starts with the filing of a petition with the bankruptcy court. The filing of the petition establishes a bankruptcy estate, that typically consists of all the belongings of the person filing the bankruptcy petition. A separate taxable entity is created when the bankruptcy petition is filed by an individual under chapter 7 or chapter 11 of the US Bankruptcy Code.

The tax liabilities of the person seeking bankruptcy protection vary depending on the bankruptcy chapter under which the petition has been filed. Usually, if a debt owed to someone is forgiven the amount canceled is treated as income taxable to the individual owing the debt. When the debt is canceled by a bankruptcy proceeding, the amount canceled is not income. However, the canceled debt lowers the amount of other tax benefits the debtor would otherwise be entitled to.

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Macon Georgia bankruptcy lawyer | Bankruptcy attorneys in Macon GA and Warner Robins – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Macon GA

http://www.macongabankruptcy.com