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How can creditors size a tax refund check one year after filing chapter 7 bankruptcy?
Wiki User
∙ 18y ago
The answer depends on who the creditor is and the status of the debt. If the debt was a student loan or other non-dischargable debt, then your tax refund can be taken. If the debt WAS discharged, ANY collection action of any kind on a discharged debt is a violation of the permanent injunction of the discharge and therefore illegal. If the creditor was not included on the creditor matrix, then informing them of the bankruptcy and discharge of the debt may be all that is necessary to have the refund returned to you. In other cases it may be necessary to file a Motion for Contempt against the creditor in bankruptcy court. This would require the re-opening of the bankruptcy.
Wiki User
∙ 18y ago
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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.
Should you spend your tax refund before you file for chapter 7 bankruptcy?
If received for last year yes. the one for next year, received after filing, no.
Do you get tax refund after bankruptcy discharge?
Depends on if your due a refund to start...and if it was taken from earnings before your filing or after.
How long do it takes for a trustee to refund your tax refund after canceling chapter 13 bankruptcy?
60days
Is it possible to exempt a tax refund in chapter 7 bankruptcy?
You can't "exempt" anything.
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.
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.
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.
What happens to your federal tax return if you filed chapter 7 bankruptcy?
Generally a portion will be included in as a non-exempt asset to be used to repay creditors. In some cases the entire refund can be seized, this depends upon the filing status and the time span between the two actions.
Should you spend your tax refund before you file for chapter 7 bankruptcy?
If received for last year yes. the one for next year, received after filing, no.
Do you get tax refund after bankruptcy discharge?
Depends on if your due a refund to start...and if it was taken from earnings before your filing or after.
Can a creditor take your income tax refund if you file Chapter 7 Bankruptcy?
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.
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.
How long do it takes for a trustee to refund your tax refund after canceling chapter 13 bankruptcy?
60days
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.
If you received a tax refund in April of 09 and filed a chapter 7 bk in June of 09 can they take your refund you receive in 2010?
No. It was not part of your "bankruptcy estate" as of the date of filing and is not one of the items that have to be reported if received within 6 months of filing. Especially if you do file your return until April.
Do you receive a refund if you owe one of the creditors on your bankruptcy?
No. The debt is simply discharged so you don't owe it.
