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What to do after filing Chapter 13 bankrutpcy

Decisions have been made, paperwork has been filed and the Kentucky resident can finally begin to breathe a sigh of relief. For many, the most difficult part of a Chapter 13 bankruptcy in federal court is taking that first step and deciding to put an end to the financial struggle. Now that the process has begun, what needs to be done?

In some instances, the individual filing for bankruptcy protection will also have tax concerns. In this case, he or she will want to contact the Collections Division of the Kentucky Department of Revenue. Upon making contact, the individual will need to provide the department with the bankruptcy case number and the date that it was filed.

Sometimes, in an effort to avoid dealing with financial concerns, an individual will fail to file tax returns. If this has been the case, upon filing for bankruptcy protection and contacting the Department of Revenue, the individual will want to complete and file any past-due tax returns. Additionally, if tax season is imminent, the individual will want to complete and file the current tax return due after the bankruptcy has been filed. One of the benefits of bankruptcy is that the majority of collection efforts cease once the bankruptcy has been filed. 

The majority of tax debts are not discharged within a Chapter 13 bankruptcy proceeding. However, this process does allow the individual to take a break from dealing with those attempting to collect debts. An experienced attorney can assist the individual is deciding which form of bankruptcy protection is appropriate in the given situation.

Source: revenue.ky.gov, "Bankruptcy", Accessed on May 22, 2017

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