Delaware Valley Tax Planning Attorney With Decades of Experience
Are you confused about the relationship between your consumer bankruptcy filing and your tax debt?
The facts and options you need to be aware of, and honest answers to your questions, are as close as your phone, right now — at the law firm of Joseph R. Viola, P.C., in Philadelphia.
Serving bankruptcy and taxation clients in Greater Philadelphia, surrounding Pennsylvania counties and South Jersey for almost 30 years, lawyer Joseph R. Viola offers the highest level of professionalism and attentive personal service to those who have fallen on hard times.
Your fears about the connection between bankruptcy filing and income taxes are understandable. But attorney Viola considers your problem to be his opportunity to serve. He is a problem-solving, recognized expert on IRS issues, and he can use that knowledge to clear up your confusion.
Without question, the bankruptcy strategy you select will have an impact on your taxes. Your discharged debt has no tax consequences, since it is excluded from taxable income. But you may not be able to take advantage of certain tax benefits you are accustomed to benefiting from. You need facts, the good news of available options and Joseph R. Viola's gift for recommending workable legal strategies.
Contact our skilled Philadelphia bankruptcy and taxes attorney for a free consultation. The phone call is also free: 866-974-8841.
Bankruptcy and Tax Advice You Can Count on, From Joseph R. Viola, P.C.
A Chapter 7 bankruptcy filing creates a separate bankruptcy "estate" — a separate taxable entity that isn't created in Chapter 13. You will file an income tax return in the same way you would for any calendar year.
This separate bankruptcy estate forms an individual estate and a bankruptcy estate. A trustee will jointly administer the new estates if you and your spouse file a joint bankruptcy petition. Each estate is treated separately for tax purposes. You would be responsible for the filing of individual tax return, while the trustee files the bankruptcy estate's tax return.
You are still obligated to submit an individual tax return to the Internal Revenue Service even if you declare Chapter 7 bankruptcy. But you need not include income, credits or deductions belonging to the separate bankruptcy estate.
You are also allowed to end your tax year on the day before you file for your consumer bankruptcy. Any tax due for that period is considered a claim against the bankruptcy estate, though it can be collected from you after your bankruptcy filing. You would be required to file another return for income earned during the remainder of the year.
For more information on the relationship between bankruptcy and taxation, contact Joseph R. Viola for a free initial consultation. Our law firm is a debt relief agency that counsels clients according to federal Bankruptcy Code.
Contact Us
Outside Philadelphia — the Lehigh Valley, Delaware Valley and South Jersey — call us toll free at 866-974-8841. If you need a weeknight appointment, we can provide it.
