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
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)
- Log into MyFTB
- (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)
- (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.