Chapter 9 – This chapter of the bankruptcy code is used for the adjustment of debts by a municipality (cities, towns, counties, taxing districts, school districts and others).
Chapter 12 – This chapter of the bankruptcy code is used for the adjustment of debts of a family farmer or family fisherman with regular annual income. Chapter 12 allows the family farmer/fisherman to reorganize debts through a payment plan. A debtor may continue to operate the farming or commercial fishing operation as a debtor-in-possession (DIP).
Chapter 15 – This chapter of the bankruptcy code allows for the recognition in the U.S. of foreign bankruptcy proceedings and access to domestic judicial proceedings by foreign representatives.
Find detailed information for all chapters of bankruptcy on the U.S. Courts Bankruptcy Basics Web page.
To take full advantage of the bankruptcy laws and get a fresh start, it is important that you do not continue to incur additional debt. If all or part of the reason you are filing bankruptcy is overdue federal tax debts, you may need to increase your withholding and/or your estimated tax payments. For help determining the proper withholding, visit our online Tax Withholding Estimator. For help with your estimated taxes, visit our Estimated Taxes page.
Federal Tax Refunds During Bankruptcy
You can receive tax refunds while in bankruptcy. However, refunds may be subject to delay or used to pay down your tax debts. If you believe your refund has been delayed or offset you can check on its status by going to Where’s My Refund tool or by contacting the IRS’ Centralized Insolvency Operations Unit at 1-800-973-0424. The unit is available Monday through Friday from 7:00 a.m. to 10:00 p.m. eastern time.
Discharge: If you successfully complete your bankruptcy plan you will receive a discharge of debt. A discharge releases you (the debtor) from personal liability for certain dischargeable debts. Some taxes may be dischargeable. Whether a federal tax debt may be discharged depends on the unique facts and circumstances of each case. Consult your bankruptcy attorney to determine which tax debts may be discharged.
General Tax Questions
Please note: We cannot provide legal or other advice about your bankruptcy case. If you have questions about filing and paying your federal taxes you can find answers here on our website. If you want to speak to someone at the IRS please call:
- Individuals – 1-800-829-1040
- Businesses – 1-800-829-4933