0
What happens to your federal tax return if you filed chapter 7 bankruptcy?
Wiki User
∙ 18y ago
Generally a portion will be included in as a non-exempt asset to be used to repay creditors. In some cases the entire refund can be seized, this depends upon the filing status and the time span between the two actions.
Wiki User
∙ 18y ago
Add your answer:
Earn +20 pts
After filing a chapter 13 bankruptcy can I get a passport?
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.
Can you refinance after chapter 7 bankruptcy if you are behind in mortgage payments?
Yes, there is a federal program to help people in foreclosure. You should be able to locate a state or federally sponsored agency that will help you. Several of the biggest mortgage companies like to play games and lose your paperwork, change the person "assigned" to your case, never return phone calls or respond to letters. There are starting to be lawyers who specialize in these cases, so check with your local or state bar referral agency. You may be able to file a chapter 13 with a plan to get current if you can do it within 3-5 years. Consult a local bankruptcy lawyer.
My husband filed chapter 13 bankruptcy in November.His court date is January 25th. Will we get a tax return?
Sorry, but this makes no sense. A chapter 13 filed in November 2011 should have had a plan confirmed by now. If there is a court date of some kind for January, the case may be about to be dismissed. In any event, if the chapter 13 is still pending when you get your tax refund, it will have to be given to the chapter 13 trustee.
Chapter 13 Bankruptcy Provides Relief to Debtors?
If you're overwhelmed by debt and have a steady job, filing for bankruptcy under Chapter 13 of the federal bankruptcy code might work for you.The federal government calls it the "wage earners" bankruptcy as it is targeted at people who have jobs and want to repay the debts they incurred. Chapter 13 calls for debts to be paid off in three to five years. The government likens the process to a consolidation loan only the debtor pays a bankruptcy trustee who distributes money to creditors.A key element to Chapter 13 bankruptcy is that, unlike Chapter 7 bankruptcies, a debtors property is not sold to pay the debts. If a debtors house is in foreclosure, the debtor will be allowed to keep the house, though he must keep current on mortgage paymentsand repay late payments.Eligibility for Chapter 13Only working individuals, including the self-employed, can apply for Chapter 13 relief. The debt limitation changes periodically, but in 2011, people could have up to $360,465 in unsecured debt, such as consumer loans, and $1,081,400 in secured debt, such as home mortgages. Debtors must undergo credit counseling with a federally-approved agency within six months before filing for Chapter 13. They also cannot have had any previous bankruptcy filings dismissed because they failed to appear within the same period.The ProcessThe bankruptcy court requires debtors to file a substantial amount of paperwork with the bankruptcy petition. Required documents include a list of assets and liabilities; a listing of income and expenditures; copies of contracts, unexpired leases and a recent tax return, as well as proof the debtor has participated in credit counseling. Information must also be filed for the spouse even if that person is not filing for bankruptcy.After the petition is filed, which requires payment of fees that were under $300 in 2011, a trustee is appointed to oversee the rest of the process. Once the petition is filed, creditors may not call the debtor about repayment, start a lawsuit to recover payment or garnishee wages.The trustee will help the debtor draw up a payment plan, and both will meet with creditors to discuss it. The plan must be approved by the bankruptcy court. The debtor must start making payments within 30 days of filing. When the debts have been paid, the bankruptcy can be discharged.
When filing for the federal income tax return do you have to attach schedule a for the state income tax return?
No, when filing for the federal income tax return, you do not attach the Schedule A for the state income tax return.
Can they hold your federal return in chapter 7 bankruptcy?
The trustee can ask you to turn it over to him if he knows that you are getting a refund back.
If a bank repossesses a car do they have to return it if you file Chapter 7 bankruptcy?
No.
Must you return state federal tax return in chapter 13?
Yes.
In California If Chapter 7 bankruptcy is the last resort Should you file bankruptcy first then return a car that has a big loan on it?
Yes. In that order.
Do you keep a tax refund after bankruptcy?
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.
After filing a chapter 13 bankruptcy can I get a passport?
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.
If your are waiting for a discharge of a chapter 7 can the court take your Governments stimilus package money that is coming?
Yes, just as they can take money from a tax return during the year you filed for bankruptcy.
Should you file tax return before chapter 7 bankruptcy in Illinois?
Yes, since you would be required to give the BK trustee copies of your most recent taxes anyway.
Why can a trustee take your income tax return if you are filing a chapter 7 bankruptcy which relieves you of your debt and does the trustee give the money to the creditors?
The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
Does file bankruptcy affect tax return?
No
Can a U.S. citizen who has lived and worked overseas for over 2 years declare bankruptcy upon his return to the U.S. in the state in which he has his driver's license and ID?
The general rule is that you must reside in the federal judicial district for 180 days before you can file bankruptcy there.
If you filed chapter 13 7 years ago and it was discharged in Feb 01 how can you contact the credit bureau to remove this from your record if your attorney will not return your phone calls?
A Chapter 13 bankruptcy will remain on a person's credit report for the required ten years not seven.
