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Are there tax consequences for filing bankruptcy?

For the average individual debtor, receiving a discharge in bankruptcy has no tax consequences.  The Internal Revenue Code §108 excludes the discharge of debt in bankruptcy from its definition of cancellation of debt income.  Outside of bankruptcy, cancellation of debt may be treated as if it were income for tax purposes.  

Note that the debtor's tax attributes, such as loss carry forwards and exclusion of gain on sale of a primary residence, as they exist before bankruptcy, pass to the bankruptcy estate and may be used or even exhausted by the trustee in the administration of the estate.  

Get good tax advice before venturing into  bankruptcy if your tax situation is complex.  IRS publication on bankruptcy and tax.

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