Can the state try to collect a tax penalty debt if I completed Chapter 13 bankruptcy?

Question

I filed a chapter 13 in July 2002 and completed my 5 years of repayments in July 2007 and the case was discharged. I immediately got a bill from the state saying I still owe $900 in interest and penalties from tax year 2000. Do I really owe this? Are all of my other debts wiped away now?

Answer 1

Bankruptcy does not wipe out tax obligations!

Answer 2

I was on the same situation and this site helped me CREDIT-SOLUTIONS.INFO-

RE Can the state try to collect a tax penalty debt if I completed Chapter 13 bankruptcy?

I filed a chapter 13 in July 2002 and completed my 5 years of repayments in July 2007 and the case was discharged. I immediately got a bill from the state saying I still owe $900 in interest and penalties from tax year 2000. Do I really owe this? Are all of my other debts wiped away now?

Answer 3

The filing of a Chapter 7 bankruptcy petition creates a separate taxable bankruptcy estate, consisting of property that belongs to you before the filing date, and is completely separate from you as an individual taxpayer. The trustee is responsible for preparing and filing the estate’s tax returns (Form 1041) and paying its taxes. The individual debtor remains responsible for filing returns (Form 1040) and paying taxes on any income that does not belong to the estate.

The filing of a Chapter 13 bankruptcy petition does not create a separate taxable estate for federal tax purposes. You file the same federal income tax return (Form 1040) that was filed prior to the bankruptcy petition. If you run into trouble paying your postpetition taxes, look into negotiating an agreement with the tax man.

You must pay local property taxes otherwise it will probably constitute a default on your home mortgage.

Answer 4

You would wise to contact your trustee for advise, especially since it discharged. It is my underwriting that should be included in plan that the trustee makes presentd for the judges approval. did he not about the debt? maybe it is enoght time to amend. Just ask hime