Bankruptcy Frequently Asked Questions

Will I get my refund?

Yes, if your Bankruptcy case is still open and pending, the NCDOR will not hold or offset your refund to any outstanding liability.

Do I have to pay post-petition taxes and/or file post-petition returns?

Yes, the Bankruptcy only protects you for liabilities incurred up to the date you file bankruptcy. From your bankruptcy petition date forward, you are required to file and pay all states taxes as they become due.

Can I make an installment payment agreement?

The department will not agree to an installment payment agreement if you are still in a current pending bankruptcy case.

If you choose to voluntarily send payments to the department, you may send them to the following address: NCDOR – Bankruptcy Unit – PO Box 1168 – Raleigh, NC 27602

I thought this was included in my Bankruptcy, why am I getting a bill?

Contact the Department at 1-877-308-9103 to verify that it has received notice of your bankruptcy filing. If the department has received notice of your bankruptcy filing, then upon completion of your bankruptcy you will receive either a dismissal or a discharge from the courts.

A dismissal will allow all liabilities not paid during the bankruptcy to immediately return back to active collections.

A discharge has certain exceptions that allow some liabilities to return to active collections. Below is a list of the most frequent items:

  • Trust fund taxes-sales and withholding taxes
  • Income taxes due within 3 years before the petition date
  • Liabilities due to unfiled tax returns

This list is not all inclusive, but only a list of the exceptions seen most often. These items will return back to active collections at the order for discharge. Consult your legal counsel to address specific questions regarding a dismissal or discharge.

Where should I mail my tax returns?

If you are currently in an active bankruptcy, tax returns should be mailed to the following address: NCDOR – Bankruptcy Unit – PO Box 1168 – Raleigh, NC 27602

Why is a Certificate of Tax Liability (CTL) still showing on my credit report or county tax records after my bankruptcy case has been closed?

A discharge in bankruptcy provides relief to the individual debtor in the bankruptcy case. It does not provide relief to the property. For this reason, a CTL will remain in place until it is satisfied upon sale of the property.

My wages are still being garnished after I file for bankruptcy protection? Can I get a refund?

Contact the Department’s Bankruptcy Unit immediately at 1-877-308-9103 to verify that it has received notice of your bankruptcy filing. Once notification of a bankruptcy filing is received, your garnishment will be released. Payments that were garnished AFTER the petition date may be refunded upon written request.

 

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