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Can the bankruptcy court take your tax refund for 2004 if bankruptcy was filed in Dec 2004 if this was not discussed at the Creditors Meeting?
I think it depends on when your debts are discharged. If they were already discharged, it was a Chapter 7 bankruptcy, and it wasn't discussed at the creditors meeting, then the refund is yours. Besides, imagine if you filed on April 15th. You might not get your refund until later June or almost July, and that's months from when your debts were discharged. I'm pretty sure it's yours.
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Answer This question gets asked somewhat frequently. The general consensus is that it's sort of regional and case specific. A particularly large refund i…nterests them for sure. However, any that they do consider as a bankruptcy asset would have had to be paid over (withheld) in the pre filing periods. If your case has been closed for a while, and you filed yet sometime before that, this years refund would have been from post filing earnings and not subject to them.
This question has been discussed many times here..and there seems to be no hard and fast rule. Certainly, it depends on several things. Most importantly, is what perio…d the overpayment reflected in the refund really relates to. For example, say it is a refund for a year and you filed BK in Dec of that year. Basically, all of the tax you paid in was from pre-petition...had you had the correct amount withheld (or by estimated payment, hence no refund of overpayment being made), presumably (and rightfully) that additional amount would have been available to pay those creditors. Consider, you could have had more (even 100%) withheld and deposited in your account with the Government, that shouldn't mean you get to essentially just withdraw it now. (Had you put it in a bank account you wouldn't expect to). On the other hand, if you file the BK in January, then virtually all the overpayment is due to earnings post petition...which are actually yours and not part of the bankruptcy. Viewed this way, I think the actions make some sense. Add in any complications, like you don't make earnings evenly through the period...and it's a question needing a reasonable solution you may need to propose to the trustee.
Yes unless it is Earned Income Credit.
You had to give a list to the court. If you did not have an attorney and did not make a copy of Schedules D, E and F or the matrix, you can get a copy from the clerk's office …or from the place in your state where they store old bankruptcy files.
Answer You can add creditors anytime before the discharge is entered.
Tell them you filed. Give them the case number. Give them the number of your attorney. If they continue to call, tell them every time they called that you filed and …WRITE DOWN THE DATE AND TIME. Make sure you verify which creditor is calling. Every call after they are informed that you have (not will) file bankruptcy is a violation of the Automatic Stay and they can be fined heavily. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.
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.
You need to discuss this with your attorney. Once you receive your tax refund, it's part of your personal assets that could be seized to pay creditors. If you file bankruptc…y before you get your taxes then the government will keep your tax refund and put it towards your debt. The bankruptcy court has 1 year to go back and open your case even after your bankruptcy has been discharged. If you can prove that the money is needed/used for catching up rent or other nessacery bills they will not take it.
Assuming you had no self control and really screwed up your financing again, you will be able to file again in 2011. The rules will be different this time.
This question comes up a lot. It seems the answer really is it depends: mainly on how much and very importantly, if your earnings/overpayment of withholding relates more to …Pre petition or post petition time. (In other words, if you filed BK in say December and the refund you get a few months later is for that Jan - Nov pre -petition period...it would be something for you creditors. Opposite if your filing was say in February...especially if you didn't work/earn much in the Jan/Feb period.) In any case, it is absolutely reportable. Tthe portion to be taken by the trustee should be the part relative to before the filing. Follow: Pre petiton assets and liabilities are in the BK. Taxes withheld from earnings are basically money put on deposit with the government, to pay the tax due/payable later on. Just like any other "savings" account. Had you had the 'correct" amount withheld (instead of too much, causing a refund), the additional you received would have been available for to pay those creditor/debts. Earnings (and hence tax overpayments) from after the filing are not part of the BK. And finally, please understand all BK is a Federal court action...your state has little to do with it....that may just be the name of the Federal Court District, of which there can be many, in your area. Yes, some of these districts have certain rules they hold by, to facilitate the cases they hear (like in AZ, which is a community property state - they would try to use those rules for definitions), but the actual process, etc. is entirely Federal Law and unchanging.
Creditor receive a notice from your BK from the BK court.
Yes. For 3 years. They do not take it all. You will get to keep your EIC and certain other credits that may be given that year. This is per my bankruptcy lawyer.
Answer 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.
Let me start with addressing, and dismissing as foolishness, a weird concept that many people seem to try to suggest in charge offs, bankruptcies and anytime they don't …pay the bill: NO, SOMEONE NEVER IS BETTERED BY YOUR TAKING THEIR PRODUCT AND NOT PAYING FOR IT! Certainly, if you just walked in and stole a product off the shelf, the company doesn't make any money and doesn't have to pay any taxes on the money it didn't make. Not what I would call a benefit. And yes, to the degree they had to paid for that product and had other costs that they don't get to recover, they have a loss on that. The way that is done is they get to deduct those expenses/losses against their other income (if they have any) like any other expenses they incurred trying to make an income. Taxes are paid on net income - that is the amount they received above what it cost to get it. So if they bring in $300, but it cost them $400 to do so, and lose $100 net, they don't pay tax on the net amount they lost. They simply lose $100. If they bring in $300 and they had no expenses, they would pay $105. (Corp tax Rate is 35%). After tax they earned $195. But say it cost them $200 (say because someone didn't pay a $200 bill), they make $100 and pay $35 tax. After tax earnings $65. Again, certainly no benefit, in fact a worse result to them by someone not paying what was owed. I guess some people want to think they did the biz a favor because it got to pay only $35 in tax instead of $105. But really, even then they made $65, not $195! OK, the $200 lost really cost them $130...but it still costs them...a lot...don't expect any thankyous! More directly: There is no tax break given to someone who looses money by a bankruptcy action. About the most that can happen is, as businesses frequently have to accrue income (that is report and pay tax on it before the cash is received), they very likely paid income tax on that accrued income they reported when the "sale" (or loan, etc.), was made. When that income for that sale isn't actually received, they may be able to get the income tax they paid on the previously accrued but now unrealized income back.
Depending on some things, like when the tax was paid and when the BK was filed, the refund is like any other asset and available to creditors. The trustee or court would… take it and pay it to creditors according to their standing in the case.
This Q has been pushed around a lot here...and this is what I've pieced together: It depends...a bit on which circuit court your in and how they feel...and especial…ly how much is involved...(obviously large amounts are wanted for creditors...and it just seems unfair for you to not pay someone your debt, because you didn't have the money, because you had too much withheld or prepaid...when the amount withheld/prepaid is entirely controllable by you! The withheld tax account at the IRS is really nothing more than a savings account to pay for the tax actually determined to be due). The other aspect is when you file for BK compared to when you made your money...If the overpaid tax is for a pre-petition filing period...most trustees want it...but if it really isn't - then you can argue it's post petition and yours. So say it's a refund for the past year and you filed BK in December.....well it was basically all withheld as part of the Jan-Dec period in your tax return...and its part of the BK...but if you filed BK in say March...well not much of it is really from the covered BK period - and much of the overpayment should be given to you. So as I write this in March of 08, if your thinking about the return you file in April 08 for earnings in 2007, and say you filed recently or expect to, any refund in that is simply money on deposit that you had back in 07 and should be used for the debts you had then and are declaring bankruptcy on now...same as if you put that money in a bank. (Of course, things like not making $ or deductions evenly through the year can complicate the calculation). Sort of makes sense.
Very likely not - epending on when nyou filed and when the money was withheld...the refund is because you had more money than needed withheld from your paycheck and pu i…n (essentially) a savings account at the IRS to pay your eventual liability. This money, earned and saved pre-filing, had you not had it put aside (or had you correctly estimated and completed the W-4 so the right amount was withheld), would have been available to pay the creditors. You know, you could literally have had 100% of your pay withheld....think it makes sense youc could get and keep it after filing BK?