Richmond County GA Bankruptcy attorneys

Richmond County GA Bankruptcy attorneys

Bankruptcy in Augusta GA

If you are an individual debtor having assets other than those you exempt from the bankruptcy estate, you can choose to end your tax year on the day before the filing of your bankruptcy petition. Then the tax year is split into 2 short tax years of less than 12 months each. The first year gets over on the day prior to the date of filing, and the second year starts with the date of filing and ends on the date your tax year usually ends. Once you select this choice, you cannot alter it. Any income tax liability for the first short tax year will be an allowable claim as a claim arising prior to bankruptcy against the bankruptcy estate. If this tax liability is not paid in the bankruptcy proceeding, the liability is not canceled due to bankruptcy and it can be collected from you as an individual.

If you do not select to end the tax year, then no part of your tax liability for the year in which the bankruptcy proceedings begin can be collected from the estate.

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We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.