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Will the bankruptcy court take your tax refund if your case has been closed for a year?
This question gets asked somewhat frequently. The general consensus is that it's sort of regional and case specific. A particularly large refund interests them for sure. However, any that they do consider as a bankruptcy asset would have had to be paid over (withheld) in the pre filing periods. If your case has been closed for a while, and you filed yet sometime before that, this years refund would have been from post filing earnings and not subject to them.
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Once a chapter 7 bankruptcy case is closed can the trustee order the debtor to relinquish their tax refund if not ordered prior to closing?
I would think that to be highly unlikely. Once a case is closed, the Trustee has filed all the proper paperwork and the case is set aside, usually permanently. Unless th…ere is substancial fraud involved on your part and the Trustee gets wind of it, I'd think you are safe.
Yes unless it is Earned Income Credit.
Answer . \nMotions to reopen bankruptcy cases shall be accompanied with the payment of any prescribed filing fees. \n. \nPayment of the filing fee to reopen a bankruptcy c…ase filed by the trustee due to the discovery of additional assets in the estate shall be payable at the time the motion to reopen is filed.
Has the chapter 13 bankruptcy been discharged (completed)? If not then in your bankruptcy agreement for repayment it probably states that you must surrender any tax return to …the repayment schedule. Read your entire agreement and consult with your attorney to be sure.
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.
You need to discuss this with your attorney. Once you receive your tax refund, it's part of your personal assets that could be seized to pay creditors. If you file bankruptc…y before you get your taxes then the government will keep your tax refund and put it towards your debt. The bankruptcy court has 1 year to go back and open your case even after your bankruptcy has been discharged. If you can prove that the money is needed/used for catching up rent or other nessacery bills they will not take it.
No one can simply take money from you. If you owe money to anyone and fail to pay it back then that person or organisation needs a court order.
This question comes up a lot. It seems the answer really is it depends: mainly on how much and very importantly, if your earnings/overpayment of withholding relates more to …Pre petition or post petition time. (In other words, if you filed BK in say December and the refund you get a few months later is for that Jan - Nov pre -petition period...it would be something for you creditors. Opposite if your filing was say in February...especially if you didn't work/earn much in the Jan/Feb period.) In any case, it is absolutely reportable. Tthe portion to be taken by the trustee should be 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. And finally, please understand all BK is a Federal court action...your state has little to do with it....that may just be the name of the Federal Court District, of which there can be many, in your area. Yes, some of these districts have certain rules they hold by, to facilitate the cases they hear (like in AZ, which is a community property state - they would try to use those rules for definitions), but the actual process, etc. is entirely Federal Law and unchanging.
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 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 should a person wait after a chapter 13 bankruptcy is dismissed to file income taxes for that year to guarantee to receive the refund?
You have to file your income taxes yearly regardless of whether you have filed for bankruptcy or not. Yes, IRS may garnish your refunds to pay toward your debts. If your bank…ruptcy is over however, you don't have to worry about that.
It depends on the courts. I had a friend who went through bankruptcy and was owed a refund from the IRS. The trustee for the bankruptcy ordered her to turn over the refu…nd to the courts to be paid out to creditors. So it could happen, but they cannot actually intercept or offset your refund. They will just order you to pay it 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.
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!
Under the current bankruptcy law, you have to follow the instructions on the judge's decree. You may come under a category that you owe nothing following the judge's ruling. Y…ou may not. Either read the ruling, get someone to read it to you, or go to the court and purchase a copy to replace the one you lost.
courts of limited jurisdiction.
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.