BLOG FIVE

SOME THINGS TO CONSIDER BEFORE FILING BANKRUPTCY - NOT ALL, BUT SOME IMPORTANT THINGS

Have you filed all tax returns for all periods (both business and individual);

Have you filed and received your tax refunds or will in the near future;

Do you have any monies coming to you, if so, when (ie via trust, will, gift, etc.);

Has an audit, by any taxing authority, been done (City, IRS, State); Was it finalized or still in the protest period;

Are tax liabilities due, if so, what periods AND what type of tax (ie. Personal, transaction privilege tax (aka sales, withholding);

Does innocent spouse apply;

Have any funds or goods been given to a relative/acquaintance within the last 2 years;

Are you getting a divorce in the future or in the process of going through a divorce;

These, and many other issues are important things to know, consider and/or address with your attorney before you decide to file bankruptcy. If you have tax issues and are contemplating filing bankruptcy you may want to make sure to get an attorney who has expertise in tax as well as bankruptcy. Not getting a “big picture” as well as “minutiae” could result in debts (which could have been discharged) still owing after filing bankruptcy or potentially having other issues arise during or after the filing of bankruptcy.