If you file bankruptcy chapter 13 and tax refund same month will you still get it?
You may get it, but you will have to turn it over to the trustee. It may shorten your plan payment time period.
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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 bankruptcy is over however, you don't have to worry about that.
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.
Filing Return While in Bankruptcy . Yes, you still have to file your taxes as usual. Any refund will probably be appropriated by the trustee and treated as a nonexempt asset, which will be used for repayment of creditors.. Adding As indicated, this is one of your assets and must be disclosed to …the creditors committee as something they can use to pay your debts. They will probably ask about it if you don't provide it. They've seen it many times before. ( Full Answer )
If a chapter 13 bankruptcy was dismissed in June of 2005 when could tax refund offset of a student loan be expected?
Answer If you are due a refund for taxes filed for the 2005 tax year, that refund can be siezed to offset the student loan - and every refund after that too.
Answer . The answer depends on who the creditor is and the status of the debt. If the debt was a student loan or other non-dischargable debt, then your tax refund can be taken. If the debt WAS discharged, ANY collection action of any kind on a discharged debt is a violation of the permanent inju…nction of the discharge and therefore illegal.\n. \nIf the creditor was not included on the creditor matrix, then informing them of the bankruptcy and discharge of the debt may be all that is necessary to have the refund returned to you. In other cases it may be necessary to file a Motion for Contempt against the creditor in bankruptcy court. This would require the re-opening of the bankruptcy. ( Full Answer )
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 included as a BK asset.. And if anything, the portion to be taken by the trustee is the part relative to before the filing. Fol…low: 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. ( Full Answer )
Answer . \nA tax refund is considered income/asset belonging to the BK petitioner and is therefore subject to seizure for the repayment of debt.\n. \nWhether 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 o…f the refund (joint, subject to child support action, etc.) and so forth. ( Full Answer )
Answer . \nYes, bankruptcy does not change the legal requirement of the BK filer to file an income tax return.
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 being 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 ( Full Answer )
Let me start with addressing, and dismissing as foolishness, a weird concept that many people seem to try to suggest in charge offs, bankruptcies and anytime they don't pay the bill: NO, SOMEONE NEVER IS BETTERED BY YOUR TAKING THEIR PRODUCT AND NOT PAYING FOR IT! Certainly, if you just walked in …and stole a product off the shelf, the company doesn't make any money and doesn't have to pay any taxes on the money it didn't make. Not what I would call a benefit. And yes, to the degree they had to paid for that product and had other costs that they don't get to recover, they have a loss on that. The way that is done is they get to deduct those expenses/losses against their other income (if they have any) like any other expenses they incurred trying to make an income. Taxes are paid on net income - that is the amount they received above what it cost to get it. . So if they bring in $300, but it cost them $400 to do so, and lose $100 net, they don't pay tax on the net amount they lost. They simply lose $100. . If they bring in $300 and they had no expenses, they would pay $105. (Corp tax Rate is 35%). After tax they earned $195. . But say it cost them $200 (say because someone didn't pay a $200 bill), they make $100 and pay $35 tax. After tax earnings $65. Again, certainly no benefit, in fact a worse result to them by someone not paying what was owed. . I guess some people want to think they did the biz a favor because it got to pay only $35 in tax instead of $105.But really, even then they made $65, not $195! OK, the $200 lost really cost them $130...but it still costs them...a lot...don't expect any thankyous! . More directly: There is no tax break given to someone who looses money by a bankruptcy action. About the most that can happen is, as businesses frequently have to accrue income (that is report and pay tax on it before the cash is received), they very likely paid income tax on that accrued income they reported when the "sale" (or loan, etc.), was made. When that income for that sale isn't actually received, they may be able to get the income tax they paid on the previously accrued but now unrealized income back. ( Full Answer )
When you are in a chapter 13 bankruptcy and have to turn over your income tax refund does this include earned income credit?
Answer . Probably. It too is an asset. And, if you had savings or an investment with interest available, that too could be used. However, from discussions here it seems tax refunds are not always seized as part of the BK process.
I believe the best way to look at this is: The money your being refunded is an overpayment made for earnings at some time. If those earnings were pre-petition, so had you had the money it would have been part of the BK assets, then the refund should be too. (The only reason the BK didn't have it… as asset to start was because you over estimated a payment...you could have over estimated and had all you earnings withheld...but that certainly wouldn't mean you should get it all back now because you had it essentially on deposit someplace else). ( Full Answer )
Until you file, your money is yours to use. Financial counseling would be an excellent choice.. However, you have debt obligations you promised to pay...that would be a good honorable place to use it. (If you don't think doing the honorable thing is important, then don't complain when others don't …care about what harm they do to you). Anything you do for some extended time, especially using any asset or trying to make a benefit, before BK can be challenged in the BK (and reversed, etc.)...as being done preferentially in anticipation of BK. And here to, the BK Court doesn't like anyone doing those things, so they may decide to not be as favorable to you as they could be. (And if you swear to them you didn't act that way (and you will be swearing to it), and they can see you did..well that can be criminal purjery). ( Full Answer )
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 additional would have been avialable to pay creditors. You could have had more witheld, should that mean they should get less? Don't y…ou 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. ( Full Answer )
You have filed bankruptcy and had back taxes put into your chapter 13 which you filed last year your question is now that the new year has come you have filed your taxes again and will be receiving a?
If you are asking whether you will receive an income tax refund while you still owe taxes, the answer is no. The IRS will require payments and keep your refunds until the bill is paid in full.
Assuming you mean your federal tax refund, if you did not list it as an asset and exempt it, you cannot keep it. If your plan is less than a 100% plan, the trustee will increase the dividend, the amount paid out to unsecured creditors, after paying himself, of course.
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 period 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. ( Full Answer )
How long do you have to wait to file a chapter 7 bankruptcy after you have filed for a chapter 13 bankruptcy?
Under the bankruptcy laws effective on October 17, 2005, Chapter 7 cannot be filed unless the debtor was discharged from the previous Chapter 7 or bankruptcy more than eight years ago. The debtor cannot file a Chapter 13 unless: (1) the debtor received a discharge under Chapter 7, 11 or 12 more than… four years ago; or (2) the debtor received a discharge under Chapter 13 more than two years ago. The above notes discharge dates. There are methods to convert an active Chap 13 to a 7. ( Full Answer )
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.
Either way they will want a tax return filed before filing for chapter 13. If you are expecting a refund then they will seize it if it is after so to keep the money file first and wait for the return, it will be considered as part of your income. If you owe it is better to know the amount before… filing. ( Full Answer )
An abstract answer will probably not be helpful. There are rules that apply to every bankruptcy court and there are local rules for each court. In general, if you earn more than the median income for your state and family size, you have to file c. 13 or apply standard deductions for various expenses… (or your actual expenses if you have proof). You must have enough money left over after your monthly expenses to pay into the plan. The plan must pay off all secured loan arrears in 60 months or less, plus the trustee's fee. ( Full Answer )
The best way, especially for a Ch 13 is to contact a local attorney. You may end up with a lower repayment plan by using an attorney as well because they understand all the exemptions that you may qualify for. If you are set on doing it yourself, contact the clerk of the local Bankruptcy Court fo…r the forms. Remember, the Clerk can NOT give you any advice. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one. ( Full Answer )
Sure. And you get one before and during C 7 too. Its just that a refund is a return of an overpayment, an amount that you put on deposit above what was needed if you will, and you hand it over so it can be used to pay the debts it would have been available for. After BK, if you overpay tax on any… of those earnings, it is yours to do with as needed also. ( Full Answer )
Can chapter 13 still stop foreclosure when you file bankruptcy on the same date of the foreclosure auction sale date?
One of the most important aspects of Chapter 13 bankruptcy and how it relates to the home mortgage foreclosure process is its ability to put the entire proceedings on hold, no matter how far along they have gone or when they homeowners file for bankruptcy. This means that foreclosure victims can, in… many cases, wait until just a few hours before their home is scheduled to be auctioned at a county sheriff sale, and still have the sale stopped. The stopping of an auction is possible by filing bankruptcy due to the fact that filing immediately creates a federal court order known by the term "Order for Relief." This is also commonly referred to as the "automatic stay," and prohibits any creditors from continuing to engage in collection activities. As the sale of a property to satisfy a foreclosure judgment counts as a collection effort on the part of the mortgage company, the auction is prohibited by federal court order once the homeowners enter into bankruptcy. Due to the Bankruptcy Abuse Prevention and Consumer Protection Act, passed in October 2005, homeowners with little time to find a solution need to be aware of at least one new aspect of filing bankruptcy. A new requirement stipulates that borrowers must have attended credit counseling within the 180-day period before the petition is filed with the court. If homeowners have not completed this before they file, the bankruptcy will have no effect. For homeowners who are considering filing bankruptcy to stop foreclosure on the day of the county auction, it is even more important to make sure the credit counseling requirement is taken care of. Courts are split as to whether or not counseling on the same day as the filing is acceptable or not, with some agreeing that same-day counseling just needs to be completed before the petition is filed, while others argue that the counseling should be done at least one day in advance. As a general rule, it may be better just to get the counseling done long before a final decision as to whether or not to file is made. One of the main drawbacks to filing bankruptcy a few hours before the sheriff sale of a foreclosed house, though, is that the county government will typically not be aware of the automatic stay going into effect until after the house has been auctioned. The courts do not move swiftly enough to alert all creditors that the borrowers have filed their petition with the court, so it is likely the auction will go ahead as scheduled, while the homeowners will have to try and have the sale rescinded or reversed at a later date. Unfortunately, this is easier said than done, due to the difficulty of convincing large bureaucracies like banks and county court systems to reverse any of their actions or decisions. Homeowners who know they filed for bankruptcy in time to stop the sale may find out later on that the house was auctioned as planned and that the county no longer lists them as owners of the property. This can be especially frustrating, as it is now up to the owners to proceed correctly to have the sale reversed and their names put back into the ownership records, a process which can take months. ( Full Answer )
Unless the Internal Revenue Service has made a mistake, any taxowing is due and payable whenever income is generated. This meansthat there will be no stimulus check issued.
Yes, and this happens often. A debtor who cannot meet the obligations of the payment plan imposed by Chapter 13 Bankruptcy may wish to switch to Chapter 7. This can be done once for any reason, without court approval. However, to switch back, approval of the bankruptcy court is required, and they wi…ll rarely allow a debtor to make multiple switches. Note that in switching from Chapter 13 to Chapter 7, much of the debtor's property is now up for grabs to be sold off to pay his or her debts. However, if the debtor cannot make the payments under a Chapter 13 bankruptcy, switching to Chapter 7 may be his or her only option. ( Full Answer )
If enough time has not taken place, but a debtor wants to eliminate their debt in a subsequent chapter 7 and has sufficient assets to do so, filing another case may be a good idea. Suppose a debtor has a messy asset(lawsuit, insurance claim, etc) but wants to use that to pay creditors. By filing ano…ther chapter 7, the trustee can liquidate that asset to pay the debts. Although the debtor may not be getting top value for the asset since the trustee only cares about getting enough money to pay the creditors, it may be worth the peace of mind for the debtor in not dealing with the asset and having the trustee in charge of converting it to dollars. Or, maybe a debtor recently filed a chapter 7 and has remaining non-dischargeable student loans or taxes. The debtor could then file a subsequent chapter 13 and be protected for the next 5 years without any worries of lawsuits, levies, or wage garnishments, even though at the end of 5 years no discharge is entered. Then, maybe at that date, the debtor might also be eligible to eliminate the debt in another chapter 7 or 13. In a nutshell, the time frames between discharge eligibility are as follows: 8 years between 7s. -727(a)(8) 2 years between 13s. -1328(f)(2) 4 years between a 7 and 13 -1328(f)(1) 6 years between a 13 and 7(if under 70% plan). -727(a)(9) The time is counted from filing to filing - not from first discharge to second filing. So don't immediately give up on bankruptcy relief just because not enough time has passed. With a little pre-bankruptcy planing and creative filing techniques, you and your attorney can probably get you the relief you need! ( Full Answer )
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 State Government will take what ever you owe them. Happy Holidays ans I would disagree with the above. First, the State mak…es 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. ( Full Answer )
It makes no difference. The refund of your overpayment is an asset that is part of your BK anyway. It was overpaid using funds before your filing, that would/could have been used to pay debts..it is a pre-ptition asset...simply on deposit at the Gov't. When you file to receive it is irrelevant.
Very likely...the refund is because you had more money than needed withheld from your paycheck and pu in (essentially) a savings account at the IRS to pay your eventual liability. This money, earned and saved pre-filing, had you not had it put aside (or had you correctly estimated and completed the …W-4 so the right amount was withheld), would have been available to pay the creditors. You know, you could literally have had 100% of your pay withheld....think it makes sense youc could get and keep it after filing BK?. Of course, as BK is Federal Law, and in a FEDERAL court, the State makes no difference. And of course, the Court has some discretion in these things too. ( Full Answer )
The amount, no. Will some part of it likely be used to pay your debts (because if you didn't have too much withheld that is what I'm sure you would have done with it then), yes.
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 amount 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 wi…th that but if your refund is good then the trustee will claim it. Hope this helps! ( Full Answer )
If received for last year yes. the one for next year, received after filing, no.
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
The U.S. Bankruptcy Code allows debtors to file for bankruptcy multiple times, but has changed the number of years you must wait between filings. Previously, a debtor could file under either Chapter 7 or 13 after a six-year waiting period. In 2005, this changed to coincide with the new rules for ban…kruptcy filings under Chapter 13. Chapter 13 After Chapter 7 Section 1328(f) of the U.S. Bankruptcy code restricts debtors who previously filed for bankruptcy under Chapter 7 from filing under Chapter 13 for four years from the date of the Order for Relief. Chapter 13 After Chapter 13 Under the same section, debtors who previously filed under Chapter 13 can again file under Chapter 13 after a mere two years from the date of the Order for Relief, although you may be required to finish payments under your reorganization plan before the judge will accept your filing. After a Dismissed Bankruptcy Filing If you filed for bankruptcy, but the judge rejected or dismissed your filing, or you voluntarily or involuntarily withdrew from the proceedings, you may file under either chapter 180 days after the dismissal/withdrawal date. Rules for Filing Bankruptcy Multiple Times While the U.S. Bankruptcy Code does not restrict the number of times a debtor may file bankruptcy, bankruptcy judges can--and do. Many judges routinely reject additional bankruptcy filings when they feel a debtor is abusing the protection or failing to honor his financial obligations to his creditors. Conversions If you wish to file bankruptcy under Chapter 13 because the provisions seem more appealing, you should consider converting your open Chapter 7 bankruptcy to a Chapter 13, instead. ( Full Answer )
An unfortunate aspect of Chapter 13 bankruptcy plans is that the budget is very strict and hard to keep. An individual having problems with the chapter 13 bankruptcy can convert into a chapter 7 bankruptcy or re-file altogether. Make sure to look into the changes and different effects that a chapt…er 7 (as compared to Chapter 13) will have on you. ( Full Answer )
If the case was filed before the deed to the new buyer was recorded, it may be possible. Many banks/mortgage companies have been trying to avoid liability for premises liability and maintenance by not recording a deed after foreclosure, sometimes for a year or more. Talk to your lawyer, or check the… registry of deeds to see if there is a new deed for the property and then talk to a lawyer. Non-bankruptcy legal actions may also be used if the mortgage was not properly executed or recorded, or violated state or federal laws. ( Full Answer )
The debtor is responsible paying all debts, including tax debt, incurred after the date of filing the petition. Failure to pay such debts can cause a plan to crash, since the taxing authority can exercise various collection tools that will make plan payments impossible to maintain.
If you did not pay taxes while on unemployment for the last 13 months can you still receive tax refunds?
People receive income tax refunds if they over paid their taxes. If you didn't pay in over a year, unless there is some other issue involved, you won't receive any refund.
By not making your payment to the trustee. He will see you fell behind, and file a motion to dismiss your case. OR, pay back the entire amount you owe in a lump sum.
Eligible persons are natural persons who have regular income and who possess noncontingent, liquidated, unsecured debts of less than $250,000 and secured debts of less than $750,000.
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).
I think if chapter 13 has been contemplated then for withholding status discussion with attorney becomes important. Attorney can construct the importance to adjust withholding or these things can be consulted with tax professional to project tax liability. Ideally in this situation tax return will d…isplayed partially or with no returns or may be no tax debt. ( Full Answer )
Yes, but if you are planning to leave the US, you should not leave until your chapter 13 plan has been approved. If you are going to spend a lot of money that is supposed to be in your plan, not being used to roam around the planet, you could find yourself facing federal charges on your return.
not at the same time, and you'll have to wait a certain period of time after being dismissed/discharged from one before filing the other.
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. ( Full Answer )
Whether you are entitled to your tax refund will depend on what type of Chapter of bankruptcy you are filing and whether the bankruptcy exemptions can be used to protect the tax refund. If you are filing for Chapter 7 bankruptcy then you can generally keep the refund if the available state bankruptc…y exemptions provide protection for it. If you are in a Chapter 13 bankruptcy you are typically required to turn over the tax refunds during the life of the Chapter 13 case. ( Full Answer )
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. That 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. ( Full Answer )
You can file as many as you want however you should wait 8 to 10years before you can file another chapter for bankruptcy.
In order to file for chapter 13 bankruptcy you need to submit proof that you have filed your state income tax returns four years prior to your bankruptcy. You must have a regular income and believe such debts can be repaid within a reasonable amount of time. Also counselling must be obtained before …filing for bankruptcy. ( Full Answer )