After a debtor files a Chapter 13 bankruptcy case, federal bankruptcy law requires that they submit and file an annual statement under penalty of perjury of their income and expenditures during the tax year most recently concluded before the filing of the statement, which includes the debtor’s monthly income and indicates how income, expenditures, and monthly income were calculated by the debtor.
Chapter 13 debtors must make this statement either 90 days after the end of a tax year or one year after the date of the commencement of the case, whichever is later if a chapter 13 repayment plan is not confirmed before the later date. Debtors must, therefore, make this statement annually basis after the plan is confirmed and until the case closes, not later than the date 45 days before the date of the confirmation of the Chapter 13 plan of repayment.
Substantive and procedural bankruptcy law both provide for dismissal under § 521 of the Bankruptcy Code for the failure to provide tax returns. The bankruptcy court will dismiss a case under § 521 upon motion once due process concerns are satisfied with a hearing after notice to the debtor. If a creditor files a motion to dismiss it must include language that the creditor timely requested a copy of the tax return under the bankruptcy rules.
The Morrison Law Group has helped 8,000 people file bankruptcy and gain a fresh start. We’ve helped over 20,000 Utah residents deal with all types of financial difficulties caused by various severe and tragic events. Talk to us today about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.