Chip Parker is the managing partner of Parker & DuFresne, P.A., where he represents Northeast Florida businesses and consumers facing bankruptcy, and homeowners facing foreclosure. His firm files more homeowners in the Mortgage Modification Mediation Program than any other law firm in Northeast Florida.
Parker is the recipient of Jacksonville Area Legal Aid's prestigious Award for Outstanding Pro Bono Service. Mr. Parker is an active member of the National Association of Consumer Bankruptcy Attorneys and National Association of Consumer Advocates.
The bankruptcy estate is entitled to a percentage of the refund the debtor expects to receive in the year in which the bankruptcy case is filed. That percentage is equal to the number of days from January 1st until the filing date divided by 365. Of course it is best for the debtor if there is no refund for the trustee to take.
Tax Refunds: If a debtor is currently owed a refund for any year prior to the year of filing bankruptcy, the estate is entitled to 100% of the proceeds to which the debtor would be entitled. If a single person or a married couple files bankruptcy, that typically means 100% of the refund goes to the estate, but if a married person files individually, typically 50% of the refund becomes property of the bankruptcy estate. The non-debtor spouse would be entitled to keep 50% of the refund.
Filing for bankruptcy, whether it's Chapter 7 or Chapter 13, requires disclosures of all of your assets. Over my career as a bankruptcy lawyer I've been asked the same dreaded question time and time again:How will the trustee know?
The short answer is that the trustee...