Posted on: 12th May, 2010 07:40 pm
I have signed over my home in Lieu of forclosure and Sold my business for a big loss 663,000 which I received a 1099C from the bank. I just filed my tax returns for the business Sub chapter 7 corp and personal returns. I will be getting a 900 refund on this years taxes and 18,000 tenative refund on a 1045 return from prior years on my personal return where I paid in. Can I enter into a contract for deed on a home or a lease option and use this money as a down payment prior to filing chapter 7. What would be the consequences as far as the bancruptcy. Since I have 80 to 100 k in unsecured credit card and medical bills I can not afford to pay back?
Welcome foxflash,
Entering into a contract to buy a property and use the tax returns as down payment, then it can be considered as fraudulent by the trustee. You can be penalized for the same. In my opinion, it would be better if you could contact a bankruptcy attorney and take his opinion in this regard.
Entering into a contract to buy a property and use the tax returns as down payment, then it can be considered as fraudulent by the trustee. You can be penalized for the same. In my opinion, it would be better if you could contact a bankruptcy attorney and take his opinion in this regard.