How to Ensure a Smooth Bankruptcy Process: File Your Taxes Beforehand

Are you considering filing for bankruptcy but want to make sure that all your tax filings are up-to-date first? Then you are making a wise decision, as it will help you to get the most out of the bankruptcy process — as well as protect yourself from any potential liabilities or legal issues down the line.

This blog post will provide an overview of why it is important to be current on your taxes before filing for bankruptcy, as well as what steps need to be taken in order to stay compliant with the requirements set forth by the bankruptcy code.

We’ll also discuss some tips and tricks on how best to prepare ahead of time so that you can maximize your chances of a successful outcome when declaring bankruptcy.

Taking Care of Your Taxes First

It is important to be current on your taxes before filing for bankruptcy because the bankruptcy code requires that the debtor be up-to-date in their tax filings, especially for the four years prior to filing as explained by the Internal Revenue Service (IRS).

Filing current taxes upfront helps protect you from any potential liabilities or legal issues down the line and can help you get the most out of this process.

If you owe money to the IRS, certain provisions of the bankruptcy code may be helpful in dealing with this liability. Preparing ahead of time will increase your chances of a successful outcome when declaring bankruptcy.

Streamlining the Situation on Paper

In order to stay compliant with the requirements set forth by the bankruptcy code when filing for bankruptcy, it is essential to make sure that all taxes due are paid on time, and that all forms are filled out correctly and completely.

In addition, keep accurate records of all transactions related to taxes, including any payments made or received. This can help ensure that all information is readily available if needed during or after filing for bankruptcy.

Finally, discuss any tax liabilities with a qualified attorney prior to filing. They can provide guidance on how best to handle the debt and make sure that you are taking advantage of any provisions that may be applicable to your situation.

Feeling Alone? Not When You File with Dolaghan Law.

Tax filing in and of itself can be time-consuming and confusing for many. If you feel hesitant to approach bankruptcy as well, know you can rest easy with Dolaghan Law!

When you work with Dolaghan Law, you’ll discover the clean slate and fresh financial start that bankruptcy can offer, as well as be provided with trusted guidance.

In other words, with Dolaghan Law, you’re not alone.

Are you ready to learn more about filing for debt relief? If so, contact Dolaghan Law today by calling 904-354-4935!