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IRS.gov Website
Publication 908
taxmap/pubs/p908-001.htm#en_us_publink1000137308

Individuals in Chapter 12 or 13(p3)

rule
The filing of a bankruptcy petition creates the bankruptcy estate. The bankruptcy estate consists of property that belongs to the debtor as of the filing date. The bankruptcy estate property is used to pay the debtor's creditors. The bankruptcy estate is not treated as a separate entity for tax purposes when an individual files a petition under chapter 12 (Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income) or 13 (Adjustment of Debts of an Individual with Regular Income) of the Bankruptcy Code. The individual should continue to file the same federal income tax returns that were filed prior to the bankruptcy petition. Chapter 13 reorganizations are not available to corporations or partnerships and are only available to individuals.
On the debtor's return, report all income received during the entire year and deduct all allowable expenses. Do not include in income any debts canceled because of the debtor's bankruptcy. To the extent the debtor has any losses, credits, or basis in property that were reduced because of canceled debt, these reductions must be included on the debtor's return. See Debt Cancellation, later.
For information about determining the tax due and paying tax, see Tax Determination and Payment, later.
taxmap/pubs/p908-001.htm#en_us_publink1000133019

Interest on trust accounts in chapter 13 proceedings.(p3)

rule
If the debtor is an individual debtor under chapter 13, do not include interest earned on amounts held by the trustee in trust accounts prior to distribution to the debtor's creditors as income on the debtor's return. This interest is not available either to the debtor or the debtor's creditors. It is available only to the trustee, and is not taxable to the trustee as individual income.