Do you have to pay taxes after filing bankruptcy?

Do you have to pay taxes after filing bankruptcy?

During your bankruptcy you must continue to file, or get an extension of time to file, all required returns. During your bankruptcy case you should pay all current taxes as they come due. Failure to file returns and/or pay current taxes during your bankruptcy may result in your case being dismissed.

What to do if you receive a 1099 C after filing taxes?

If you receive a 1099-C after filing taxes and you are insolvent, you probably do not owe any additional taxes on that amount. You must file form 982 along with the amended return to verify this insolvency and show that no tax is due on the income shown on the 1099-C form.

What makes the state of California a bankrupt state?

To be bankrupt, California would have to be defaulting on actual debt obligations, and seeking the protection of the courts from it’s creditors. That may happen in the future, but it’s not the case now.

Is it possible for a state to declare bankruptcy?

A State cannot declare bankruptcy but that may change someday. See, The Case for Allowing U.S. States to Declare Bankruptcy California has an unfunded pension liability estimated by some to be half a trillion dollars.

Can a case be stayed by a federal bankruptcy court?

(4) Automatic stay caused by a filing in another court, including a federal bankruptcy court. (Subd (b) amended effective January 1, 2007.) The notice must state whether the case is stayed with regard to all parties or only certain parties.

When to file a notice of stay in California?

If the person who requested or caused the stay has not appeared, or is not subject to the jurisdiction of the court, the plaintiff must immediately file a notice of the stay and attach a copy of the order or other document showing that the proceeding is stayed. The notice of stay must be served on all parties who have appeared in the case.

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