If you are experiencing a hardship and cannot pay your tax liability in full, the Division of Revenue is available to work with you to resolve your tax liability, which may eliminate the need for you to consider bankruptcy as an alternative. Please contact the Division of Revenue at (302) 577-8586 to discuss payment options.

However, if you are involved in a bankruptcy proceeding, you should keep your attorney advised as to the tax periods, type of tax, amounts, and the recent breakdown of tax, penalty, and interest of any tax liabilities you have incurred. You may obtain information regarding your tax liability(ies) by visiting https://tax.delaware.gov and setting up an account with the Division of Revenue for tax liability inquiry and tax filings.

Your bankruptcy filing will temporarily stop Division of Revenue enforcement action to collect taxes incurred before the petition was filed. However, you are still required to file returns and pay taxes that become due after your petition is filed.

Dischargeability of your tax liability, post-petition tax obligations, and any legal questions should be discussed with your attorney. In many instances, your liability, or a portion of it, may not be discharged. If any of your taxes were not discharged by your bankruptcy, please contact your local Division of Revenue office to make arrangements to satisfy the remaining tax obligation. If you believe that your bankruptcy discharged your tax debt, or a portion thereof, for which the Division of Revenue is continuing its efforts to collect, please ask your attorney to contact the Division of Revenue. If you were not represented by an attorney in your bankruptcy proceeding, please send a letter explaining what portion of your tax liability you believe was discharged, along with a copy of your Order of Discharge, to:

Attn: MS #25; Kevin T. Murphy
Delaware Division of Revenue
P.O. Box 8763
Wilmington, DE 19899-8763
Phone: (302) 577-8540

PLEASE BE ADVISED THAT FAILURE TO FILE ALL OF YOUR REQUIRED TAX RETURNS MAY RESULT IN: 1) YOUR BANKRUPTCY CASE BEING DISMISSED OR CONVERTED TO A LIQUIDATION/CHAPTER 7 BANKRUPTCY CASE; 2) YOUR BANKRUPTCY CONFIRMATION BEING DELAYED OR DENIED; AND/OR 3) THE DIVISION OF REVENUE ESTIMATING ITS LIABILITY WHICH MAY REQUIRE YOU TO PAY MORE THAN WOULD BE NECESSARY IF YOU FILED THE REQUIRED RETURNS. IF YOU HAVE ANY LEGAL QUESTIONS, PLEASE CONSULT COUNSEL.

Helpful Links

United States Bankruptcy Court, District of Delaware: deb.uscourts.gov

Delaware State Bar Association Lawyer Referral Service: dsba.org

Delaware Volunteer Legal Services: dvls.org