Bankruptcy - FAQ
Will bankruptcy get rid of my tax debt?
Every situation is different. Only certain taxes are dischargeable in bankruptcy. The specific facts of the tax types, the date of the taxes, and how the debt was incurred affect dischargeability. You should contact a bankruptcy attorney for specific guidance.
What do I need to do if I am in an active bankruptcy?
If you are in an active bankruptcy and you have NOT included us in your bankruptcy petition, please notify the Georgia Department of Revenue at (404) 417-6543.
Why am I getting mail from the Department of Revenue while I am in an active bankruptcy case?
You may receive mail from the Department of Revenue while you are in an active bankruptcy case. Some types of correspondence from the Department of Revenue does not violate the Bankruptcy Code's automatic stay provisions. Please contact your bankruptcy attorney for further guidance.
What do I do if I received a letter for a state tax liability that is not included in my bankruptcy?
If you received a letter for a state tax liability that is not included in your bankruptcy, please contact your attorney for further guidance. Your situation may depend on whether the tax debt accrued before or after the filing of your bankruptcy petition.
Why wasn't my debt discharged in my bankruptcy?
Only certain tax types and periods are dischargeable in bankruptcy. Please contact your attorney for more information.
I received a letter demanding payment of past due taxes. Why wasn’t this debt discharged in my bankruptcy?
Only certain taxes are dischargeable in bankruptcy. The Department discharges the tax debts subject to discharge only after we receive notice of your discharge from the bankruptcy court. If the Department never received notice of your bankruptcy, it cannot discharge the pertinent tax debt. You should contact a bankruptcy attorney for specific guidance.
Should I continue to make payments on my installment payment agreement for state tax debt after the filing of my bankruptcy petition?
Do not continue to make payments on your installment payment agreement after you file a bankruptcy petition. The filing of your bankruptcy petition will automatically cancel your installment payment agreement with the Department.
I received a letter for a post-petition liability that will not be included in my bankruptcy. Can I set up a payment agreement for this debt?
Please contact (404) 417-6543 to set up an arrangement to pay your post-petition debts. Sometimes it is possible for you to add post-petition tax debt to your bankruptcy case. Other solutions may be possible depending on the facts of your particular case. You are still required to pay new tax debts as they come due while in bankruptcy. Although filing for bankruptcy prevents the Department from taking actions to collect this debt while you are in bankruptcy, the debt is not dischargeable. You will still be liable for this debt once you are out of bankruptcy. The Department will continue to add interest and penalty, if applicable, on any unpaid amounts. If you continue to incur more post-petition tax debts, the Department may request the bankruptcy court’s permission to dismiss your bankruptcy case or to enforce its lien against your property.
Why are you sending me collection notices on a joint income tax debt when my spouse filed bankruptcy and I did not?
If you have not filed bankruptcy, the Department or Revenue will continue to collect a debt from you even if the joint filer has filed for relief under federal bankruptcy law.
Will the garnishment of my wages stop if I filed bankruptcy?
With certain exceptions, the Department must stop all collection activity when it receives notice that a person has filed for bankruptcy relief. You will receive a refund of any payments taken due to a garnishment or levy during the period you are protected from creditors.