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Is it legal to take an income tax ref due to bankruptcy?
Andrewsmimi
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 you didn't file BK until 2009...that is prepetition money and rightfully should be used to pay your Pre P creditors.
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∙ 15y ago
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Will IRS still take your income taxes after filing chapter 13 bankruptcy?
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 dischargeable (due more that 3 years prior to the filing date).
How does bankruptcy affect filing taxes if you are in bankruptcy?
Doesn't change any of your legal obligations (other than the debts at the court), like filing taxes, or what is due.
What are accepted reasons for bankruptcy?
There is only one acceptable reason for c. 7 bankruptcy: inability to pay your debts when due. You have to show you do not have or expect your income to change, and you you do not have enough excess monthly income to allow you to file a c. 13 instead.
Can a new company use the website of a company that is now defunct due to bankruptcy?
If they have the legal rights to the site.
Can you file bankruptcy when you debt is federal and state income taxes?
You can file bankruptcy at any time you like, but I will tell you that bankruptcy court does not have the authority to drop the taxes. The IRS or State may allow a payment plan instead of allowing them to begin confiscating property. You will still have to pay the taxes due and it may be to your benefit to work out a payment plan directly with tax department and not have to pay the legal and court fees involved with the bankruptcy.
Can you put 4 year old income taxes in a bankruptcy?
Federal income taxes due in an amount certain 3 years or more before the bankruptcy filing date can be discharged along with other dischargeable debts. You cannot just file to discharge the taxes, unless you have no other unsecured debt.
What legal challenges did Crown Cork and Seal face in 2001?
Crown had to contend with the possibility of bankruptcy due to asbestos-related court claims.
How will loan forgiveness affect credit?
The amount of the loan forgiven becomes income on which you will have to pay income taxes. If the forgiveness is due to uncollectability, it will have a negative effect on your credit. Unpaid taxes will also negatively affect your credit.Filing bankruptcy or a special IRS form showing you were insolvent at the time will take care of the tax issue.
If you file bankruptcy do you owe income tax on the amount of debts that were discharged?
This is an intriguing question considering that the IRS does consider forgiven debt to be income normally. However, I have never seen the IRS pursue any of my clients for income taxes due to forgiven debt in bankruptcy. I stay as far away from the Tax Code as possible, though the answer may lie in there.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.
If you can no longer participate in your chapter 13 due to a job loss how can your employer keep taking out payments?
If the bankruptcy participant is no longer employed by the company then the deduction cannot be made. There obviously has been some miscommunication between the person and his or her legal counsel. The person involved in the bankruptcy needs to sit down with the attorney and straighten out the issue. It is doubtful without the participant having a source of income that the dismissal of the chapter 13 can be avoided.
If EIC earned income credit is more than refund can student loans take your taxes Bankruptcy and other agencies cannot take your tax refund when eic is greater in amount than that of the refund?
Any federal or state agencies (including student loan and child support) have the right to take any amount due from your refund. It has nothing to do with EIC and they have the right to take the whole refund you are due if you are in default or have a judgment against you.
What three types of debt cannot eliminate by filing bankruptcy?
1. Student loans. 2. Past due child support. 3. State income taxes owed. 4. Federal income taxes less than 3 years when the amount due was determined. 5. Debts incurred through fraud or other illegal means. 6. Debts incurred knowing or intending to file bankruptcy. Who told you there were only three?
