What would you like to do?
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.
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.
In the state of Ohio is a chapter 7 bankruptcy trustee entitled only to the portion of a tax refund from the date of the bankruptcy filing.?
Answer Depending upon the amount of time between the filing of the BK and the filing of the tax return; a refund may be pro-rated to determine the portion that is inclu…ded as a BK asset. And if anything, the portion to be taken by the trustee is 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.
Answer A tax refund is considered income/asset belonging to the BK petitioner and is therefore subject to seizure for the repayment of debt. Whe…ther or not the refund can be included in the BK depends upon the time frame of the BK filing vs. the tax refund date and amount, the status of the refund (joint, subject to child support action, etc.) and so forth.
If you file a chapter 13 bankruptcy and include taxes years 2004 2005 can the IRS take your refund in 2007 for what you owe for tax year 2004?
como subio y bajo los precios en metro pcs desde ano 2004 al 2007 Ans I believe that the IRS maintains it's right to offset (that is clearly legal/proscribed) and what is b…eing done in something like this, even in cases of BK. Whether that right is absolutely always allowed may be another story...but unlikely it's worth fighting. The money won't go to you. (Otherwise, the refund would probably have to go to the court anyway as a pre petition asset). if a person files bankrupcy in 2009 can the IRS offset the refund
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.
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 realtes 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 should propose to the trustee.
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.
In Ohio chapter 13 bankruptcy trustee entitled what portion of a tax refund from the date of the bankruptcy filing?
Hello, In Ohio if you file chapter 13 the Trustee will not touch your Federal or State tax refunds. Unless you owe Federal and State tax debt. In that case the Federal and St…ate Government will take what ever you owe them. Happy Holidays ans I would disagree with the above. First, the State makes no difference, Bankruptcy las are Federal, handled by a Federal District BK Court. (Yes, some of these courts have certain allowances, that basically try to conform the handling to the convesntions of the area they work in). If the above were true, you could simply have 100% (or a high amount) of your earnings withheld, and hence have a large refund due...and say none of it is applicable to pay your debts? Nope. Tax refunds are from excess amounts you essentially had put in to a savings account with the Gov't with your name on it. Have the right amount withheld, by properly completing and filing your W-4 and you won't have a refund...and that extra money in your paycheck could be used to pay the debts you owe. The trustee won't hold back, in fact will give prioeity to paying, any tax you owe - but won't have you benefit by overpaying and asking for a refund. James _________________ I disagree with James. Why is it that all persons assume an income tax refund is due to an overpayment of federal taxes? I work for the state and have a set amount mandated to come out of my paycheck from PERS (public employee retirement system) which affects my adjusted gross, I pay nothing into Federal tax but I earn a tax credit for two children and being a full time student. In any case, a refund does not always indicate an overpayment...but NO, the IRS does not turn your refund over to the Chapter 13 in Ohio unless you owe back taxes.
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!
I know Ohio is an exceptionally sepcial place...able to make laws to control the debts and contracts you have with people and business all over the country! Sure the name on t…he buidings your having all this done in don't say FEDERAL?
No they do not take your refund from my experience, but they do take the state refund. If they do take it, you can contact the trustee and ask for it back. I was told as long …as the payments were being made every pay period we were okay. Hope this helps
You may get it, but you will have to turn it over to the trustee. It may shorten your plan payment time period.
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.
I spoke to my lawyer about it and he said that he has never know the trustee to take the refund in this district. I would advise you to talk with your lawyer, I am sure your c…ase wasnt his first and they should have a history with the trustee.
The tax refund goes into the bankruptcy estate. If your chapter 7 filing did not exempt the refund, the money will be used to pay the trustee and to pay your debts pro rata. T…hat is, each creditor gets an amount equal to the percentage the debt is to the total indebtedness. You are not likely to get anything back, but if all the debts are paid off 100 per cent and the trustee is not entitled to any more money, the balance will be paid to you. The trustee should have decided what s/he is going to do. If you have a lawyer, s/he should discuss it with the trustee. You can also talk to the trustee or your case manager. I doubt you will get any of the refund, but make sure to stay on top of the issue and get notices of any trustee motions regarding these funds.