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How can you find out how much of your income tax the trustee will take after filing chapter 7 bankruptcy?
The answer to this question varies from jurisdiction to jurisdiction, but I would say it is wise to ask your attorney what the common practice is in the district in which you filed. In Indiana, the trustees normally lets debtors know at the Meeting of Creditors (also called the 341 hearing) whether they want the refund check, and if so, how much. Different states let you keep different amounts of cash in bankruptcy, so the state in which you live may influence how much the trustee takes. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
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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.
Prior to actually filing for bankruptcy, the amount of time to prepare the paperwork will vary dependingg on the complexity of your case. Once you have filed a Chapter …7, you will probably receive your discharge in about 3.5 to 4 months. After you file, you will attend a meeting of creditors in about 4-6 weeks where you will answer questions by the bankruptcy trustee and possibly creditors. You are eligible to receive a dishcharge 60 days after the conclusion of the meeting of creditors unless one of your creditors files legal action to try to prevent you from receiving a discharge. By day 62 or 63, the bankrupty court should mail you a copy of the discharge order in the mail Usually when filing bankruptcy takes time to process. It is long proces when filign bankruptcy. Once you filed bankruptcy already then you should wait normally 8 to 10 years before you can file again.
I assume you mean "how do you keep your tax REFUND when you file a chapter 7 bankruptcy?" A tax refund is an asset of the estate and, generally, the trustee will take it. Ther…e are two ways to avoid this, first way would be to delay filing your bankruptcy petition until after you have gotten your refund and spent the money. The second way is to declare part or all of the refund to be part of your exemption, however exemptions are small and most people have other assets (like computers, wedding rings, paychecks, etc.) they want to protect with their exemptions.
Any person of legal age or legal entity (corporation, partnership, LLC, etc.) can file for c. 7. Whether there is any need or point in filing depends on other facts.
There are both advantages and disadvantages to filing for bankruptcy. Chapter 7 is often known as debt liquidation bankruptcy and is a good options for many individuals are co…uples that are in dire financial straits. As soon as a debtor files for bankruptcy, there is an automatic stay and most creditors must stop their collection efforts. Thus, the debtor can begin rebuilding his credit; financially-speaking, the debtor can start over. It is true that filing for bankruptcy ruins a debtor's credit from a number of years and may cause embarrassment. However, incurring more debt and facing the harassing phone calls, letters and potential lawsuits from creditors can have the same effect. Filing for bankruptcy will allow many debtors to get started sooner on rebuilding their credit in peace.
Answer It depends. This varies widely from district to district and even division to division inside of a district. For example, in the Southern District of In…diana, in the Indianapolis and Evansville Divisions they usually do not make you pay your refund check to the Chapter 13 trustee unless the refund check is huge; in the Terre Haute Division, they ask that you pay it if the non-earned income credit portion exceeds $750.00, and in the New Albany Division they always make you pay half regardless of how much it is. Certainly the Chapter 13 trustee can usually convince the court to make you give them tax refunds during the life of the Chapter 13 Plan if they wish, but many trustees do not. The only way to know is to call the Chapter 13 trustee who serves your district and division and ask them their policy regarding tax refund checks. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
Until discharge. (The length of the ch 13 plan.) Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar associat…ion and they will refer you to one.
Yes, but it may be very difficult for you to determine your own eligibility for a Chapter 7 filing. Attorneys have automated software programs to assist them with this q…uestion. Part of the bankruptcy filing paperwork is a form commonly known as the "Chapter 7 Means Test". It is actually about 4 different "tests" grafted together into one form, in a format where you only take the subsequent tests if you "flunk" the previous one. If you "flunk" all of them, you have to check a box on the first page that informs the Court and the Trustee that your Chapter 7 filing is "presumptively abusive" of the bankruptcy code, and the Trustee then has an affirmative duty to seek the dismissal of your case, or its conversion to a Chapter 13 case. This is not to say you are home free once you "pass" the Means Test. Your case can still be dismissed if it is later determined to be abusive of the code despite passing the Means Test. The first test is fairly simple. You just list your gross income. If you are filing jointly with your spouse, you must list both gross incomes. If your gross income is less than the state average for a household of your size, you pass, and you don't have to fill out the rest of the form. I am only familiar with the average annual income levels for Michigan, and, off the top of my head, its about $43,000 for a household of one, and about $51,000 for a household of two, with similar incremental increases for larger households. If you flunk the gross income test, you move on to the next one, which allows you to deduct from gross income your payroll taxes and average living expenses for your region of the country. This might be a little tough to do, although the data exists out there somewhere, maybe on the IRS web site. If you can claim enough deductions in this second test, you might just qualify. The third test allows you do deduct your mortgage payments and car payments, so if you have larger than average car payments and house payments, you might just pass that one. Finally, they have a fourth test which basically tries to figure out if forcing you into a Chapter 13 bankruptcy would yield enough money for your general unsecured creditors to make the time and trouble of a Chapter 13 case worthwhile. You can certainly find a copy of the Means Test form online and plug in some numbers to get an inkling about whether you qualify. So, there is no simple answer to your question. There is no bright-line cut-off point. In my practice it is not unusual for a suburban family of four with two late-model cars and a big house to qualify with a household income of $100,000.
Items obtained through fraud, child support, court ordered restituion and federal/state taxes (off the top of my head). ALL debts must be listed because you are swearing that …you have listed all debts. If there are assets in the case, some of your debts will be paid, therefore, the Courts need to know of ALL of your debts, so you list EVERYTHING. However, some debts are non-dischargable such as: Items obtained through fraud; Domestic Support Obligations; Taxes that are less than 3 years old; Student Loans; Debts incurred in the process of a crime (such as a DUI accident). It should also be noted that there is a 90 day presumptive period. Any debt incurred within 90 days prior to filing a Bankruptcy is presumptively fraudelent. Any debt incurred with the intention of filing Bankruptcy or without intention of repayment is presumed fraudulent.
Yes. The injury lawsuit must be disclosed in the BK schedules. If it is of nominal value, the trustee may abandon it. If there is serious money however, the trustee can prosec…ute the lawsuit and keep the proceeds of any settlement to pay off creditors. Depending on the exemptions your specific states uses, you may be able to exempt a certain amount, and this would also need to be disclosed in the BK schedules.
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 If the vehicle was not included as non-exempt property in the BK petition it is considered exempt from sale and seizure.
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.
Just filed? Just like always, except one would expect that it would be something the administrator will want, along with confirming the status of the account with the IR…S. The business last filing should be after it dissolves.
No! You must claim more dependants on your paycheck to avoid the trustee claiming your refund. 1500$ is the limit from Fed and State combined. Keep your refund below that amou…nt combined and you will be in the clear. I find it ironic that if you owe the irs any money the trustee does not help out with that but if your refund is good then the trustee will claim it. Hope this helps!
If the property was claimed as exempt the trustee has 60 days to either exempt or reject the contract. If nothing is done then the contract is automatically rejected and the t…enant is considered a holdover tenant. If you exempted the property the property reinvests in the debtors name and thus the rents should follow as the debtor is the only one with standing to collect the rents. That is not to say the trustee will not try hard to stand in your way though.
If you still owe federal income taxes, they will. But if they don't take it, the chapter 13 trustee gets the tax refund. You should have listed any income taxes that were dis…chargeable (due more that 3 years prior to the filing date).