Whether a tax refund will be taken by the Trustee in a Chapter 7 bankruptcy will depend on several factors. As a general rule, the amount of taxes withheld from your pay are prorated over the entire year. This means that the portion of the tax refund for the time before the bankruptcy filing is property of [...]
tax refund
A common question I get this time of year is whether the trustee will take the debtor’s tax refund if he files for bankruptcy. The answer depends upon many factors. The Trustee has a duty to administer non exempt assets if those assets are worthy of administration. For a tax refund to be worthy of administration the [...]
The bankruptcy estate consists of not only assets in the possession of the debtor but also their rights to stuff they don’t yet have. So if you will be entitled to a refund for 2009′s taxes and you file before you receive the refund, that right to payment is part of the bankruptcy estate. My [...]
Tax refunds are property of your bankruptcy estate. There are two times of the year this can be especially problematic. During Tax Season During tax refund season–the first four months or so of the year–you may be entitled to a tax refund. If you are getting a refund, you want to be able to keep [...]
