Harris County GA Debt Relief and Bankruptcy attorneys

Harris County GA Debt Relief and Bankruptcy attorneys

Tax and bankruptcy in Harris County GA

When you are an individual debtor having assets besides those you exempt from the bankruptcy estate, you may select to end your tax year on the day before the filing of your bankruptcy petition. Then your tax year is split into 2 short tax years of fewer than 12 months each. The first year gets over on the day prior to the date of filing, while the second year begins with the filing date and ends on the date your tax year usually ends. Once you select this choice, you cannot change it. Any income tax liability for the first short tax year will be an allowable claim as a claim arising prior to bankruptcy against the bankruptcy estate. If this tax liability is not paid in the bankruptcy proceeding, the liability is not discharged because of bankruptcy and it will be collected from you as an individual.

If you do not select to end the tax year, then no part of your tax liability for the year in which your bankruptcy case begin can be collected from the estate.

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