Can they still foreclose on my house
after I have filed bankruptcy?
It depends! If the
problem is temporary, usually not more than three months, then contact the Trustee and ask to work out an
alternate payment plan. If you're acting in good faith, the Trustee will normally work with
you.
Unlike chapter 7,
when filing a Chapter 13 bankruptcy petition, you do 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.
When filing a
Chapter 7 bankruptcy petition, you create 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.
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