Phoenix, AZ asked in Bankruptcy, Tax Law and Identity Theft for Arizona

Q: I’m filing chap 7 bankruptcy pro se & am listing all my debts. I have a 2020 overdue tax of $4K from someone who…

…stole my identity. Should I still include this in my list of debts since ‘technically’ it’s filed under my identity? Or not include it? I don’t want to delay the process or worse have my petition denied based on omission. On the other hand, if I list it, won’t that be considered as acceptance of this fraudulent tax return even though I didn’t file it! This was reported by me already to IRS, but have not received any response. Please help… thank you!

2 Lawyer Answers
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Absolutely include the tax debt and identify it as fraudulent every opportunity you get. You are not accepting the debt or ratifying it as yours but you should list it in your schedules.

1 user found this answer helpful

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: If you look at the Official Bankruptcy forms, you will see that there is a column to note whether the CLAIM is disputed, contingent or unliquidated. Your obligation is to list all CLAIMS against you, and the holders of those claims, whether you agree with the claim or not (unlisted creditor's claims are not discharged, unless the claimant knew of the bankruptcy in timely fashion and chose not to file a written Proof of Claim in the case.)

When a non-lawyer files a bankruptcy case, he/she will almost always fall into one or more of the "traps". The foregoing is just one example of a layman's failure to grasp all the finer points.

You are far better advised to engage an experienced attorney licensed to practice in your jurisdiction, to avoid misunderstandings, and traps. It's cheaper to do it right the first time.

1 user found this answer helpful

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