Bankruptcy
If you have filed for bankruptcy or are considering bankruptcy, the Louisiana Department of Revenue (LDR) continues to administer your state tax accounts in accordance with federal bankruptcy law.
Bankruptcy may affect how tax debts are collected, but it does not eliminate your responsibility to file required tax returns or pay taxes that become due after your bankruptcy filing.
What Bankruptcy May Do
Depending on your bankruptcy case, bankruptcy may:
- Stop certain collection activities while your case is pending
- Allow tax debts to be addressed through the bankruptcy process
- Require LDR to work through the bankruptcy court for certain collection actions
- Protect you from some collection efforts while the automatic stay is in effect
The effect of bankruptcy depends on the type of bankruptcy filed and your individual circumstances.
What Bankruptcy Does NOT Do
Filing bankruptcy does not prevent LDR from:
- Auditing a tax return
- Determining the correct amount of tax owed
- Requesting required tax returns
- Issuing assessments when permitted by law
- Offsetting refunds when allowed by federal bankruptcy law
- Administering tax accounts after your bankruptcy filing
Bankruptcy also does not automatically eliminate tax debt. Some tax liabilities may remain payable after your bankruptcy case concludes.
Your Responsibilities During Bankruptcy
Even after filing bankruptcy, you must continue to:
- File all required Louisiana tax returns
- Pay taxes that become due after your bankruptcy filing
- Respond to requests from LDR if additional information is needed
Failure to remain current on post-petition tax obligations may affect your bankruptcy case.
Already Filed Bankruptcy?
If you continue receiving tax bills after filing bankruptcy:
- Verify that LDR has your bankruptcy case information.
- Have your bankruptcy case number, bankruptcy court, and Louisiana account number available when contacting us.
Statements may continue to be issued for informational purposes even while your bankruptcy case is pending.
Need Assistance?
If you have questions about your Louisiana tax account while in bankruptcy, contact LDR's Bankruptcy Section.
Phone: (225) 219-2255
Please have available:
- Bankruptcy case number
- Bankruptcy court
- Louisiana Revenue Account Number (if available)
- Current mailing address
- Daytime telephone number
Updated November 07, 2024
Frequently-Asked Questions
Can LDR still audit my tax return?
Yes. Bankruptcy does not prevent LDR from examining returns or determining the correct tax liability.
Do I still have to file Louisiana tax returns after filing bankruptcy?
Yes. You must continue filing all required returns and paying taxes that become due after your bankruptcy petition is filed.
Does filing bankruptcy automatically erase my Louisiana tax debt?
No. Whether tax debt is discharged depends on federal bankruptcy law, the type of tax owed, and your bankruptcy case.
Why am I still receiving notices from LDR?
Some notices are required by law or are informational. If your bankruptcy information is not reflected on the notice, contact LDR's Bankruptcy Section.
Will my refund be affected?
Depending on federal bankruptcy law and your specific case, state tax refunds may be offset or otherwise handled through the bankruptcy process. (Louisiana Department of Revenue)
How do I update my business information?
The fastest and easiest way is through LaTAP.
If you are unable to complete the update online, use the appropriate LDR form or contact the Department for assistance.
