How do I claim tax refunds during Chapter 13 Bankruptcy?

Claiming tax refunds during Chapter 13 Bankruptcy in California requires a few extra steps. First, the debtor must complete IRS Form 656, the Offer in Compromise form, which is used to claim the full or partial payment of a debt or tax liability. This form will explain to the court the circumstances leading up to the bankruptcy, and any financial hardship the debtor has faced. Next, the debtor must submit IRS Form 433-A and other documents that provide information on the debtor’s income, expenses, assets and liabilities. These documents provide a snapshot of the debtor’s financial situation to the court. The court will then evaluate the debtor’s financial situation and make a decision on whether or not to allow the debtor to claim the tax refund. If the court grants the request, then the debtor must follow the court’s instructions and provide supporting documents when filing the claim. Once all the paperwork and documents are submitted, the debtor needs to wait until the court reviews the claim and renders a decision. If approved, the court will order the Internal Revenue Service to release the refund to the debtor. The tax refund money will be used to pay the creditors and the balance will be paid to the debtor. Before receiving the refund, the debtor should consult with their attorney or financial advisor for advice on using the refund.

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How do I claim tax refunds during Chapter 13 Bankruptcy?

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