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Can the Bankruptcy trustee include as part of your estate Tax Refunds which were received prior to the filing of your bankruptcy petition?
Wiki User
∙ 15y ago
The quick answer would be no. Any money received prior to filing would not be included in your bankruptcy estate and this, not recoverable by the trustee. Any money still owed to you would be part of the estate and would be collectible. What I would want to know is if the money was completely spent or otherwise exempt on the day you filed. I disagree, and really don't understand the above. Any asset you had or had a right to (that would include everything you received, or things you have yet to receive - like tax refunds for overpayment of taxes) from earnings made PRIOR to your filing date are part of the BK estate. They are available for use to pay the liabilities or debts incurred or due from the PRIOR to filing periods. I do not understand why you would think a tax refund you received prior to filing BK would be exempt? The earnings from prior to BK, or savings accounts established prior to BK aren't. All your refund is - is an overpayment of the estimated payment of taxes for those periods...had you had the correct amount withheld (or estimated) for the tax...and had this same extra amount deposited and saved in a US Bank (instead of with the US IRS), you would agree it was available to the estate for creditors wouldn't you?
Wiki User
∙ 15y ago
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What can a trustee take during chapter 13 bankruptcy?
Money for your plan payment, tax refunds.
Will you get your tax refund if you file for bankruptcy?
Whether you are entitled to your tax refund will depend on what type of Chapter of bankruptcy you are filing and whether the bankruptcy exemptions can be used to protect the tax refund. If you are filing for Chapter 7 bankruptcy then you can generally keep the refund if the available state bankruptcy exemptions provide protection for it. If you are in a Chapter 13 bankruptcy you are typically required to turn over the tax refunds during the life of the Chapter 13 case.
How long do you have to be in bankruptcy before they take your taxes?
"Take your taxes"? Do you really mean "take your tax refunds, if there are any"?
How long should a person wait after a chapter 13 bankruptcy is dismissed to file income taxes for that year to guarantee to receive the refund?
You have to file your income taxes yearly regardless of whether you have filed for bankruptcy or not. Yes, IRS may garnish your refunds to pay toward your debts. If your bankruptcy is over however, you don't have to worry about that.
Will your tax refund be taken to pay back your debt if you file for bankruptcy?
Tax Refunds and ReturnsThere is no specific protection for tax refunds in bankruptcy. As such, the "wild card" exemption* is used to try to protect these funds as much as possible. Further, any portion of your tax refund that pertains to the "earned income credit" is also fully protect and yours to keep.In a Chapter 7 Bankruptcy, you may lose all or part of your tax refund due for the tax year in which you filed your bankruptcy. For example, if you file for bankruptcy in 2009, your Trustee may be entitled to all or part of your 2009 refund, which is due from the tax return that you will be file in 2010.If you file for bankruptcy today, you must provide copies of your tax returns for the years 2008, 2007, 2006, 2005, and you may have to provide a copy of your 2009 tax return when it is filed, to the Trustee. In a Chapter 13 Bankruptcy, you must also provide copies of your tax returns to your Trustee during the term of your Chapter 13 Bankruptcy. You will generally lose tax refunds during the entire term of your Chapter 13, not including any amount that can be protected by the "wild card".-------* The wildcard exemption is $1,000 per person. It allows you to retain up to $1,000 of assets (cash, accounts, property …) that is not otherwise protected when you file for bankruptcy.
Will private student loan companies go after a cosigner if you file for bankruptcy?
Gov't backed student loans are exempt from BKruptcy....they will come after you thru tax refunds or garnishment.
What happens to tax refunds in Minnesota bankruptcy?
As in all BKs, it becomes a part of your estate (to be divided among creditors). Delay your BK 'til after you blow your refund on babes, buds and beer.
You filed bankruptcy in the end of 2005 your case was discharged Feb 2006 closed April 2006 Trustee returned your 2005 tax refunds to you saying they have no interest in them you were wondering if yo?
It would seem that only your pre filing taxes would have been subject to the bankruptcy anyway - that is the 2005 one, so 2006 (post filing) should be most certainly clear too.
I filed for bankruptcy on October 28 2008 my 341 Meeting was November 24 2008 it is now January 30 2009 if I complete my taxes today would the Trustee be entitled to those funds?
The question is not would the trustee be entitled to the refunds (which is what you mean, I think), but whether they were exempted in your petition (Schedule C), having been disclosed as an asset in Schedule B. If you had a lawyer and it was not disclosed and exempted, you may have a malpractice claim. If you did it yourself, you had a fool for a lawyer.
Will the bankruptcy court seize your refund if you had a child tax credit filed in March of 2005 in Mississippi?
AnswerNo, I doubt it. Taxes are different than income. You get the child tax for having kids, and refunds for overpaying on your taxes.....Taxes which you have to pay on income. It isn't like an inheritance or extra profit.
Can you receive a tax return if you are paying back taxes through bankruptcy?
Probably not. The IRS is getting out of sending paper tax returns to taxpayers. They want you to file electronically now. That is for everyone, though, it has nothing to do with whether you are in bankruptcy or not. NOW.... IF you are asking whether you will receive a tax REFUND while paying back taxes then the answer is a DEFINITE "N-O"! The IRS is not going to give you money while you still owe them money. They will "apply" any refunds/credit due you to whatever taxes you still owe.
When you are in a chapter 13 bankruptcy and have to turn over your income tax refund does this include earned income credit?
Probably. It too is an asset. And, if you had savings or an investment with interest available, that too could be used. However, from discussions here it seems tax refunds are not always seized as part of the BK process.
