Bankruptcy

File for bankruptcy

Filing for bankruptcy may relieve you from some (but not all) of your tax debt.

Step 1. Consider other options

Before you file for bankruptcy, consider these other options:

Individuals and businesses

• Pay your debt
• Apply for a payment plan
• Make an offer on your tax debt (offer in compromise)

Individuals only

• Tax debt relief for spouse

Businesses only

To avoid the hassle and cost of bankruptcy, you might want to ask your attorney about:

• General assignment for the benefit of creditors: With the help of a third party, your assets are liquidated to pay your creditors.
• State court receivership: A state court appoints a receiver to review and manage your business.

Step 2. Prepare to file for bankruptcy

If you decide to file for bankruptcy and you want to include your tax debt, you should:

• Get your tax account information (tax debt, tax return filing status, pre-bankruptcy letter)

  Online

  Log into MyFTB

  Phone

  (916) 845-4750

• If you’re a representative: Have your client fill out and fax us this form so we can release their information to you.

  Form: Authorization for One-Time Release of Confidential Tax Information (FTB 3518)

  Fax

  (916) 845-9799

• File missing tax returns: You should file any missing tax returns before you file for bankruptcy.

Step 3. File for bankruptcy

Provide your tax account and debt information to your bankruptcy representative to help accurately list your tax debt in your bankruptcy forms.