I didn't file Federal Tax Return this year because my student loans are in default

[MIGirl]

What kind of proof do I need to show the court to prove why I can't file my Federal Tax return now? If I did, it would all get taken. I know they look at any money you may get in the next few months, but I sure won't be getting that, even if I did file.

I know I can't Bk my loans, but it will take 9 months to get them out of default, and I haven't been able to afford to start that.

Thanks.

[LadyInTheRed]

The bankruptcy code requires that a Chap 7 debtor submit to the trustee the last return you were required to file and did file. I am not certain, but I don't think you actually have to file the return to file BK. You would provide the trustee with a copy of the most recent return you filed. But, if you expect a refund that you can't exempt, your case will likely be kept open until your returns are filed and the refund is paid to the trustee for distribution to your creditors.

You should talk to your attorney about whether you should file your returns before or after filing BK. I don't think the government can offset your taxes while you are in BK because that would be a preference. So, there may be some advantage to filing your taxes soon after you file BK instead of before if you have exemption to cover it.