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Filing Income Taxes While in a Chapter 13 Bankruptcy


Chapter 13 bankruptcy is a payment plan where you make payments to the bankruptcy trustee rather than to creditors.  These payments are still deductible on your return the same as if you made the payments directly to the creditor.  

Refunds on your returns while in a chapter 13 bankruptcy may be required to go towards debt repayment.  In this case you should have your tax advisor help you adjust your withholdings and/or estimated tax payments so that you do not have large refunds that could be used towards your necessary living expenses.