Bankruptcy is a federal legal proceeding that helps debtors restructure or discharge their debt. The bankruptcy includes all debts prior to the petition (these are known as prepetition debts).

Bankruptcy does not stop the Louisiana Department of Revenue from:

  • Conducting an audit to determine a tax liability
  • Issuing a notice of tax deficiency
  • Demanding tax returns
  • Making an assessment for any tax and issuing a notice and demand for payment of such an assessment
  • Issuing refunds on tax returns and offsetting those refunds against assessed taxes when certain conditions apply
  • Offsetting tax refunds to tax debt under certain conditions

Bankruptcy does not relieve a debtor of the obligation to file all required tax returns and pay taxes that become due during the bankruptcy case. Failure to file and/or pay current taxes during bankruptcy may result in dismissal of a debtor’s bankruptcy case.

If you have any questions concerning bankruptcy you can reach us at 225-219-2255.