1. In general, while in Chapter 7 or Chapter 13 bankruptcy, you file your federal income tax return in the same way and and at the same time as you normally do.
2. The question is often presented as to whether the discharge of debt in bankruptcy creates "income" that you have to pay tax on.

Outside of bankruptcy or an insolvency situation, the discharge or foregiveness of indebtedness does create income and you generally do have to pay tax on this "income". The tax law views a $5,000.00 loan that you do not pay back as no different than you being paid $5,000.00 for working.

Fortunately, in general, if debt is discharged while you are in bankrutpcy or an insolvency situation, there is an exception to the rule and such is not considered taxable income.