21 Jun More on Income Tax Debts
Income tax debts are included in both Proposal and Bankruptcy Proceedings. In fact, income tax debt owing right up to the filing of the Proposal and Bankruptcy are included. For example, if someone is self-employed and files Bankruptcy March 31, 2011, then the Trustee files a “Pre-Bankruptcy” tax return for the period January 1, 2011 to March 31, 2011; and any income tax owed is part of the debts of the Bankruptcy. In a Proposal, the same type of information is filed.