Why Does the Bankruptcy Court Need My Tax Forms?

When we file your bankruptcy case, we have to turn in copies of your last year’s tax forms. Your bankruptcy trustee will look at them, and you might get asked a question or two at your bankruptcy trustee hearing. 

• Do the tax forms match your pay stubs? Your tax forms should match your pay stubs, usually. If they don’t, be ready to explain why.  Maybe you lost your job; maybe you just lost your overtime. You may get asked.
• Are you drilling for oil in Texas? Or raising marijuana in California? Besides your main job, if you have a business or big investment on the side, the trustee wants to know.
• What about your family?  Your eligibility might depend on whether you are married or single, on the number and age of your children.

That’s why we need to send in the complete set of your tax papers. Not just your W-2s. The whole 1040 form.

Are you raising marijuana in California?

The Tax forms are hardly ever a problem.

You probably aren’t drilling for oil in Texas; and if you are not working at the same job, you can explain. We just need to send the forms in, so the trustee can do his job.