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.
The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
If it has not been exempted, all of it.
No, if your BK (assuming this is a Ch. 7) is discharged, the money is yours. The only time you would have to surrender the refund is if you were expecting a refund during or shortly thereafter from when you originally filed.
Yes. Suprisingly it is a fairly low (I believe 7th position) claim against the assets. Generally speaking, income tax debt can be discharged if the tax was assessed more than three years prior to the filing of the bankruptcy petition. Note that it is from the time the tax was actually assessed against you (generally the date you filed the return). So if you filed your 1999 tax return 5 years late, you'd still have a bit of a wait before that would be dischargeable under bankruptcy.
The trustee can ask you to turn it over to him if he knows that you are getting a refund back.
It depends on whether your attorney has protected your income tax return refund or not. Again, it all depends on whether it was calculated as future income or protected. Check with your attorney. Clarifying - if the refund comes from an overpayment of taxes on income made pre-petition - then the refund is part of creditor assets and goes to pay them. Just like had you deposited it in a personal savings account at the local bank, to pay tax next year, instead of with the government bank account.
Yes, bankruptcy does not change the legal requirement of the BK filer to file an income tax return.
30 seconds Sam
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.
You made an interest-free loan of your money to the IRS and obviously did not need the income that represents. You are not "forfeiting" your refund. It will be added to your plan payments and may permit more of your debts to be paid pro rata - after the trustee gets his/her cut - or shorten the term of the plan if you have a 100% plan.
Yes, since you would be required to give the BK trustee copies of your most recent taxes anyway.
The trustee may be able to take a portion depending upon the amount of the refund and the time frame between the filing or discharge of the BK and the date of the tax return. If a percentage can be ceased it will be pro-rated according to the number of months between the BK discharge and filing of taxes. In a chapter 13, the refund is not ceased but if it is of a considerable amount it may affect the payment amount assigned to the BK. But the money was generated BEFORE you filed for bankruptcy, so it's technically an asset that you already had and as such is to be factored in to the distribution to the creditors.
This makes no sense. Sorry. Student loans are not discharged by bankruptcy, and unless the loans are private, they are not sold to other lenders. Typically, loans return to the Loan Service Center of the Department of Education, and are administrated by the Department of Treasury.
Yes, but it must be listed correctly in your bankruptcy paperwork. It must be listed as both an asset and must be exempted for the trustee to return funds to you.
You should know that this is done the IRS and the trustee each receives an information showing the amount of income that was received for the year and that information would be used to report the income on the trust income tax return.
Tax Refunds and ReturnsThere is no specific protection for tax refunds in bankruptcy. As such, the "wild card" exemption* is used to try to protect these funds as much as possible. Further, any portion of your tax refund that pertains to the "earned income credit" is also fully protect and yours to keep.In a Chapter 7 Bankruptcy, you may lose all or part of your tax refund due for the tax year in which you filed your bankruptcy. For example, if you file for bankruptcy in 2009, your Trustee may be entitled to all or part of your 2009 refund, which is due from the tax return that you will be file in 2010.If you file for bankruptcy today, you must provide copies of your tax returns for the years 2008, 2007, 2006, 2005, and you may have to provide a copy of your 2009 tax return when it is filed, to the Trustee. In a Chapter 13 Bankruptcy, you must also provide copies of your tax returns to your Trustee during the term of your Chapter 13 Bankruptcy. You will generally lose tax refunds during the entire term of your Chapter 13, not including any amount that can be protected by the "wild card".-------* The wildcard exemption is $1,000 per person. It allows you to retain up to $1,000 of assets (cash, accounts, property …) that is not otherwise protected when you file for bankruptcy.
You should have told the court and the trustee in the chapter 7 documents what your intentions were with respect to the lease. If you were terminating the lease, you must return the leased property to the creditor.
If you continue making payments on your car you may keep it. If you do not owe anything on your car you can keep it so long as your trustee does not assume the equity in it in order to pay off creditors.
In October 2005, President George W. Bush passed the Bankruptcy Abuse and Consumer Protections act that made it more difficult for consumers to have debts discharged through bankruptcy. This affected both Chapter 7 and Chapter 13 bankruptcy, the two types most often filed by individual debtors.Specific Changes in Bankruptcy QualificationChapter 7 bankruptcy eliminates most consumer debts, with the exception of government student loans, overdue taxes, alimony and child support. In order to qualify for Chapter 7, your personal income must fall below the median income in your state of residence. The purpose of this means test is to determine if you have at least $100 a month available to repay creditors. If your income is lower than your state median, you must produce a list of your current debts, monthly expenses and income. Both your income and your debts will be evaluated for the six- month period immediately preceding your bankruptcy filing. You must present your previous year's tax return and paystubs as proof of your income.If you do not pass the means test, you are ineligible to file for Chapter 7 bankruptcy. However, you may still be eligible to file Chapter 13, which is a modified repayment plan for your creditors. Under the laws of Chapter 13, you have up to five years to repay your creditors based on a repayment schedule determined by a bankruptcy trustee. The amounts you are required to pay are determined from an expenses to income formula used by the bankruptcy court.Another change brought about by the bankruptcy reform laws is the requirement for credit counseling prior to your bankruptcy being discharged. Your bankruptcy lawyer will provide you with a list of approved credit counseling agencies where you can complete this requirement. You are also required to obtain post-filing credit counseling and submit a certificate of completion to your bankruptcy lawyer.Changes in the Automatic Stay Process and Child Support CollectionPrior to 2005, filing bankruptcy meant that most people and organizations had to stop collection activity against you. Since that time, the automatic stay no longer applies to eviction notices, divorce proceedings, suspension of your driver's license or payment of child support. If you owe past due child support, the person you owe it to will be given top priority over your other creditors to receive payment in either type of filing.
The purpose of finance in business is to avoid bankruptcy, protect your assets, receive income, to plan ahead and submit/receive an accurate tax return.
If you didnt reinstate the loan, you SHOULD return it promptly or call them to come get it.It will be cheaper on you to return it. The lender will sit on it until they get ready to come get it so they can add late fees ,ect. to your bill.
You give your car back to the bank after filing bankruptcy, the bank will ask your attorney for the vehicle back and give you a certain amount of time and the location to return it to. Definitely do not give it back before you file you will need to have it discharged legally from your debts.
Not Exactlly:Debts are divided into two categories; dischargeable and nondischargeable. Dischargeable debts are those that the debtor is no longer personally liable to pay after the bankruptcy proceedings are concluded. Nondischargeable debts are those that are not canceled because of the bankruptcy proceedings. The debtor remains personally liable for their payment.As a general rule, there is no discharge for you as an individual debtor at the termination of a bankruptcy case for the second and eighth priority taxes described earlier, or for taxes for which no return, a late return (filed within 2 years of the filing of the bankruptcy petition), or a fraudulent return was filed. However, claims against you for other taxes predating the bankruptcy petition by more than 3 years may be discharged. However, if the IRS has a lien on the debtor's property, this property may be seized to collect discharged tax debts.Yes, taxes, any penalties along with or interest thereon are each given their own category and status in the BK and may be dismissed.