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Repossession
Debt and Bankruptcy

If you file Chapter 13 and change your mind and your car is repossessed will the IRS take your taxes for the car?


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Wiki User
2015-07-15 18:49:50
2015-07-15 18:49:50

NAKEI, I dont KNOW the answer but I dont see why they would. How would repoing your car give you any income for the IRS to tax?? Is a collector/repo person threatening you?

No, the IRS will not take your taxes, on a repossessed vehicle or other property. However, the lender does have various legal options to get money owed them by an individual. This includes the ability to file a claim with the courts to garnish your wages and even your tax refunds.

You should check the laws in your state regarding "garnishment" because not all state allow for wage garnishment and that may also affect where your tax refunds can be garnished.

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Yes. Bankruptcy does not change you absolute legal obligation to file taxes.

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You will have to ask your bank about that. They are in control now.

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Yes, although if the taxes are very recent (due within the past 3 calendar years) then they are not dischargeable. If you didint file taxes, then they are also non dischargeable.

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Yes. And the court will likely want to see your return.

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Actually you can get your vehicle back if you file bankruptcy within 10 days of your vehicle being repossessed. Your attorney can file an emergency injunction if needed.


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