Warner Robins Georgia Bankruptcy lawyers – How bankruptcy relates to taxes
Taxes and Bankruptcy in Bibb County Georgia
A separate estate, for tax purposes, is not created for an individual who files a petition under Chapter 12 or 13 of the US Bankruptcy Code. The person, should continue to file the same federal income tax return that was filed before the filing of the bankruptcy petition.
On your return, the filer must report all income received in the whole year and subtract all permitted expenses. You must not include any debt discharged due to of bankruptcy in income on your return. But, you should reduce certain losses, credits or basis in property by the amount of forgiven debt.
If you are an individual debtor in a chapter 13 wage earners plan, you should not include as income on the return any interest earned on amounts held in trust accounts while awaiting distribution to your creditors. The interest is not available either to you or to your creditors. It is available only to the trustees, and is taxable to the trustee as his or her individual income.
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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
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