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Taken from the webpage of King Law firm
State Income Tax Claims, Federal Tax Claims, and Real Estate Taxes must be included in a bankruptcy filing. Income tax claims that are less than three years old will usually be consolidated with other debts and paid over three to five years in a Chapter 13. Depending upon income and assets, income tax claims for returns that were filed more than three years before the bankruptcy can sometimes be reduced substantially in a Chapter 13 and eliminated completely in a Chapter 7.
Generally personal income taxes that are over three years old, and were assessed at least 240 days prior to bankruptcy filing, and voluntarily filed at least two years ago, can be included in a bankruptcy. However, most taxes aren't dischargeable. The trust fund portion of employment taxes is not dischargeable in bankruptcy; therefore, an Offer in Compromise is the only way to effectively eliminate the burden of the trust fund portion of employment taxes.
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When you are in a chapter 13 bankruptcy and have to turn over your income tax refund does this include earned income credit?
Answer 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 i…t seems tax refunds are not always seized as part of the BK process.
Once the amount owed is assessed, I'm not sure it is ever "dropped", as in if you ignore or hide from them long enough it goes away. Understand, that is different than how lon…g they may have to determine (or assess) how much you owe...that is normally somewhere between 2 and 7 years. It's like how long they have to file charges against you for a criminal act my expire, but once you've been charged and sentenced...pretty much whatever you do, you will end up having to do the sentence.
Some can. Federal income taxes due 3 years prior to filing, if the returns were filed when due, can be discharged. "Trust fund" taxes, such as withholdings for employees…, cannot. Some property taxes may be.
How does one file for income tax that is past due when the past years income papers are ruined from water damage from leaky roof?
If you call the IRS or visit your local IRS office, they will be able to provide you Wage and Income transcripts. These will be transcripts of all of the W-2's, 1099's, …and other documents that were reported to them. That would give you a pretty good start.
Yes (obviously if they are in arrears). The amount submitted for inclusion depends on the stage of recovery by the council. If a reminder has been sent because instalmen…ts are in arrears and that right to pay by instalments is now withdrawn, the whole years council tax is included. This includes if a summons has been issued and of course if a court order granted. The sticking point is if the debt is in joint names as in husband & wife. The non-bankrupt can be pursued for the council tax.
It's not can...it's have to - A basic, rough primer: BK is always done under FEDERAL Laws, in a Federal Bankrutpcy Court. Basically State makes little differen…ce. (Yes the BK Courts operating in certain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better). In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all, always involved in some way. The court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furntiure and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified). Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK). Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that sdebt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything). The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything. There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not rust people with bankruptcies in their past, especially in the last few years. Many more things. Not disclosing all items is frequently trie and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well). Many seem to fall into the trap thinking that they can trick or change the system. It simply ain't going to happen. The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before! The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams, and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones). The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too.
Apr 29 midnight
The court can of course....you have placed all your financial affairs in their hands. And cosider, if the refund is for over withholding from work you did in 2008, and yo…u didn't file BK until 2009...that is prepetition money and rightfully should be used to pay your Pre P creditors.
The total amount of your federal income tax that is due for the calender year taxpayer is usually due to be postmarked before MIDNIGHT April 15 of the year after the tax year …that the 1040 federal income tax return is for. After that due date penalties and interest will start to be added to the amount of past due taxes until the amount is paid in full.
April 15th is when yearly taxes are due. although an extension can be filed
dont buy as many condoms, and you wont become bankrupt.
You either have to make quick money buy a simple job or you could not just do anything ,(that is not smart).
State Income Tax Claims, Federal Tax Claims, and Real Estate Taxes must be included in a bankruptcy filing. Income tax claims that are less than three years old will usually b…e consolidated with other debts and paid over three to five years in a Chapter 13. Depending upon income and assets, income tax claims for returns that were filed more than three years before the bankruptcy can sometimes be reduced substantially in a Chapter 13 and eliminated completely in a Chapter 7. The discharge of the debt in a bankruptcy, can actually cause taxable income for the year it is discharged if not handled proerly. You will get a 1099-C for most matters concering it.
Federal income taxes must be filed by April 15th every year. Extensions can be filed for those people needing a little more time to prepare their taxes. The above is true for …filing taxes; however, the actual income taxes are due when the income is earned. If income is not withheld by your employer or if you are self employed you will need to make quarterly estimated tax payments to fulfill your tax obligation.
Your bankruptcy attorney can help you add assessments due and owing up to the date of your filing. Assessments incurred post filing are due and owing.
An individual may not include his/her rental agreement on the statement of intention while filing for bankruptcy. The statement of intention is not meant for real estate p…roperty like apartments. It is meant for personal property. Hence, only property like automobiles and other personal property may be included in it.