What would you like to do?
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.
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.
Who pays if you are in a Chapter 13 bankruptcy with your ex-husband and the trustee drops the bankruptcy?
Answer When a BK is dismissed with or without prejudice the debtor(s) lose the protection of the automatic stay which will allow creditors to pursue collect…ion action including the filing of a lawsuit. Sometimes debts will be assigned in a dissolution of marriage to one or both parties. Creditors are not legally bound by the terms of a divorce as to which person they can collect the debt from if the debt is jointly held. Likewise, if the couple lived in a community property state terms of a divorce are irrelevant. Both will be held equally responsible for the debts regardless of whether they were incurred individually or jointly.
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?
Answer The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
Answer No minimum income amount is required but the debtor must have a regular source of income and qualify under the maximum amount of secured and unsecured de…bt guidelines.
What can you do if you owe too much money for Chapter 13 bankruptcy and your income is too high for Chapter 7?
Answer The Chapter 13 limits are $336,900 for unsecured debts and $1,010,650 for secured debts. Basically close to 1.5 mill.....a lot to leave others hanging on for. … So, if your above the means testing allowing for C7 where you get all debts extinguished, it means you should have enough to start paying the debts you've incurred, at least down low enough you can then file for C13, and after a few more years of making good, have the rest discharged and get away for free with them. So what you mean is you make a lot of money, enough it would seem to pay on your bills and for those things you promised others you would pay on first, even if it intrudes on your lifestyle to do so, but you want to spend more than that...well, get a financial planner...and control. Simply if you have incurred so much debt for the things you've wanted and enjoyed that paying on it now will detract from your current and future lifestyle, and you would rather everyone else does without so you can have more...well...that doesn't make for a very sympathetic position.
If you owe fed taxes and getting a refund in state taxes can the trustee in chapter 13 bankruptcy still take your refund?
Sure. The refund is only the amount you estimtaed as hence made as ocver paid, Had your estimate been more accurate or you had paid less then that amount, then the add…itional would have been avialable to pay creditors. You could have had more witheld, should that mean they should get less? Don't you think you should pay everyone as much as you can can o what you promised to paY? Its not exactly your refund....its money you put on deposit someplace else, and it should be used to pay those you promised it to.
It depends how the plan was setup. If its a 5 year plan, then no. Consult an attorney. Speak with an attorney about your specific situation. If you can not find an a…ttorney, contact your local Bar association and they will refer you to one.
No! You must claim more dependants on your paycheck to avoid the trustee claiming your refund. 1500$ 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!
Sure. Can you take the money and not pay it back as you promised from a business whose owner and employees have kids?
Chapter 13 is more of a repayment plan than a debt wipeout. Because of that, if there is a change in your financial circumstances after filing for bankruptcy then the court ne…eds to be aware of it.
Money for your plan payment, tax refunds.
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.
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.
Not usually. Once the plan is approved, that's it. There are 2 usual exceptions, if you inherit a large amount or win a lottery. Tax refunds, which are not employment income, …often have to be sent to the trustee. It will shorten your plan completion time.
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).