Taxes in Bankruptcy

Krieger & Company

Who will file my taxes?

The Trustee will file your income taxes for the year that you file for bankruptcy and, if it hasn’t already been filed, the year before you file for bankruptcy. During the year of bankruptcy, your Trustee will file two returns: one pre-bankruptcy return up to the date of bankruptcy and one post-bankruptcy return from the date of bankruptcy until the end of the year.

What if I owe tax?

Bankruptcy includes all of your debts, including taxes owing up until the date of bankruptcy. This includes any balance from all prior years and the pre-bankruptcy partial tax return.

Bankruptcy does not include any taxes you owe during your post-bankruptcy period. Even though the Trustee will prepare your post-bankruptcy tax return, you will have to pay any tax owing on income earned after the date of bankruptcy.

Will I receive my tax refund?

If you receive an income tax refund for any year prior to the date of bankruptcy, or for either your pre-bankruptcy or post-bankruptcy return, this refund is property of your bankruptcy estate and will be taken by the Trustee on behalf of your creditors. This does not include any regular amounts you may receive during the year such as HST credits or child tax benefits.