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Can the trustee still come after your income tax return even if your bankruptcy is discharged?
Wiki User
∙ 18y ago
Maybe. It depends upon the amount of time that has elapsed between the BK discharge and the receiving of the tax refund. Generally any refund that can be seized by the trustee must be pro-rated.
Wiki User
∙ 18y ago
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Will the bankruptcy trustee take all of your tax return refund?
I think it depends on when the bankruptcy is discharged, but it would be discussed at your meeting with the creditors and the trustee. If it wasn't discussed, then the refund is yours.
Why can a trustee take your income tax return if you are filing a chapter 7 bankruptcy which relieves you of your debt and does the trustee give the money to the creditors?
The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
Who much of your tax return can the bankruptcy trustee take?
If it has not been exempted, all of it.
If a bankruptcy was discharged four months ago do you have to turn over your upcoming tax return for the year to your trustee?
No, if your BK (assuming this is a Ch. 7) is discharged, the money is yours. The only time you would have to surrender the refund is if you were expecting a refund during or shortly thereafter from when you originally filed.
Do you keep a tax refund after bankruptcy?
Has the chapter 13 bankruptcy been discharged (completed)? If not then in your bankruptcy agreement for repayment it probably states that you must surrender any tax return to the repayment schedule. Read your entire agreement and consult with your attorney to be sure.
Can they hold your federal return in chapter 7 bankruptcy?
The trustee can ask you to turn it over to him if he knows that you are getting a refund back.
When a chapter 7 bankruptcy has been discharged can any income tax refund go to the trustee?
It depends on whether your attorney has protected your income tax return refund or not. Again, it all depends on whether it was calculated as future income or protected. Check with your attorney. Clarifying - if the refund comes from an overpayment of taxes on income made pre-petition - then the refund is part of creditor assets and goes to pay them. Just like had you deposited it in a personal savings account at the local bank, to pay tax next year, instead of with the government bank account.
Trustee took 08 refund What is the time legally for him to disperse money to creditors and return funds if any to the bankruptcy filer?
30 seconds Sam
Can income tax debt be discharged in a bankruptcy?
Yes, if the tax returns were filed when due or at least 3 years before the date of filing the bankruptcy. This is a complex area with a lot of exceptions or requirements to meet. Consult an experienced bankruptcy lawyer. Some income taxes are dischargeable in bankruptcy, such as 1040 tax liabilities, however some will remain with the bankruptcy, for example, 941 payroll tax liabilities and trust fund. The tax code is complicated, taxpayer need a better understanding of tax code and bankruptcy laws to deal with a tax debt.
Do you have to forfiet your income tax return if you file chapter 13 bankruptcy?
You made an interest-free loan of your money to the IRS and obviously did not need the income that represents. You are not "forfeiting" your refund. It will be added to your plan payments and may permit more of your debts to be paid pro rata - after the trustee gets his/her cut - or shorten the term of the plan if you have a 100% plan.
Should you file tax return before chapter 7 bankruptcy in Illinois?
Yes, since you would be required to give the BK trustee copies of your most recent taxes anyway.
Can a trustee take your federal tax refund in Missouri if your bankruptcy was discharged before you filed your taxes?
The trustee may be able to take a portion depending upon the amount of the refund and the time frame between the filing or discharge of the BK and the date of the tax return. If a percentage can be ceased it will be pro-rated according to the number of months between the BK discharge and filing of taxes. In a chapter 13, the refund is not ceased but if it is of a considerable amount it may affect the payment amount assigned to the BK. But the money was generated BEFORE you filed for bankruptcy, so it's technically an asset that you already had and as such is to be factored in to the distribution to the creditors.
