CAN BANKRUPTCY TAKE MY 09 TAX RETURN

Hi nikkilindeman,

All your assets will be taken into consideration when you file Chapter 7 bankruptcy. Your bankruptcy trustee may use your tax returns in order to pay off your creditors. You should have a word with your bankruptcy attorney in order to know if the trustee can take away your tax returns if you file now.

Thanks

All your assets will be taken into consideration when you file Chapter 7 bankruptcy. Your bankruptcy trustee may use your tax returns in order to pay off your creditors. You should have a word with your bankruptcy attorney in order to know if the trustee can take away your tax returns if you file now

>>Can they take it if I file now?

Your Attorney knows the timing with that, so jot that question down on the list of all the questions you're coming up with, and take that list with you during your next visit. When I did my chapter 7, they kept the tax return from the next year, but it had to do with timing. With my chapter 13, my tax refunds were provided directly to the Trustee, instead of me. The Trustee reviewed my payments, to ensure I was current, and then released the refund to me. The check was made out to the two of us, and he had to endorse it in order for me to deposit it.

If you've got to give up the tax refund, change the withholding on your W2 form to 10. That's the highest number we're allowed, and it'll reduce the amount of your 2009 refund.

We are well below poverty line. We are on welfare and have 7 children. My husband and I are living with my parents and both of us have returned to school after a loss of my husband's job and our home. I have file for Chapter 7 bankruptcy and received a notice that they wanted all my tax refund checks to be signed over to them. We will receive about $5300 due to all the children we have. We needed this money to live on since we have no current income, until I get out of school in 3 months. Can they take this money or do we qualify for this to be exempt because of our poverty level?

You have to give it to them if they're asking for it. I suggest explaining your situation to the Trustee, and ask for an exception.

I filed Pro Se 1-17-2012. The bankruptcy trustee took my 2011 tax returns. I now have a letter saying I am to deliver my 2012 returns to her. I am just coming out of divorce, bankruptcy, forecloseure and loss of a good paying job--I was counting that return to help me get back on my feet. can she take my return, or is part of it all she can take?

If you're paying back your creditors less then 100% in a chapter 13, the Trustee can take all of it. You should increase you exemptions, so not as much tax is taken out of your paycheck. That way the Trustee doesn't keep as much each year.

when do they send a letter to return the refund??? i did chapter 7 bankruptcy filed on jan 2012 and was discharge may 2012 in court since i had done my 2011 taxes the judge said i could keep my return since it was just about the limit i could keep so just want to know when does the trustee notifies you

Welcome Guest,

The trustee should have notified you within a few week's time. It is strange that you haven't been notified yet. You should get in touch with your bankruptcy attorney and discuss the matter with him.