QUESTION
Can I file my tax return before my bankruptcy gets discharged?
Asked on Dec 19th, 2012 on Bankruptcy - Delaware
More details to this question:
I want to file my taxes before my bankruptcy is discharged so I can get the refund. Will that mean my refund gets taken or do I get to keep it myself?
13 ANSWERS
That depends on a couple of things. Are you in a 7 or 13. In a 13, the trustee is very likely to demand up to 50% of any refund. If you are in a 7, the question is, did you exempt your refund. If you did, it's yours. If you didn't, the trustee has the right to claim it.
Answered on Feb 11th, 2013 at 12:40 AM
If your tax refunds were exempted in your bankruptcy case, and you do not owe any back taxes or student loans, then you should receive your entire tax refund back.
Answered on Feb 07th, 2013 at 7:45 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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It depends on the state where you live, the trustee and the amount of the refund. I recommend that people obtain their refunds before filing the bankruptcy, use the refunds to hire a very good bankruptcy attorney and then move forward with the rest of their lives. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Feb 07th, 2013 at 12:17 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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It depends on if you owe taxes and if you can exempt it out under the federal or state exemptions.
Answered on Feb 06th, 2013 at 11:50 PM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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Assuming you filed a petition under Chapter 7, your tax refund belongs to the trustee if it is for a period prior to your bankruptcy, regardless of when it is received. Your lawyer should have asked and you should have listed the tax refund as an asset on your schedules. Failure to list an asset can result in the trustee bringing suit against you to recover the tax refund. Contact your lawyer and have him/her file an amended schedule.
Answered on Feb 06th, 2013 at 11:06 PM
Workers Compensation Attorney serving Independence, MO
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Law Office of Nancy L. Jackson LLC
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The way the question is phrased it sounds like your bankruptcy case has already been filed. In that case, the discharge is not the determining factor of when you can or should file your tax returns. At this point, a portion or all of any refund you may be entitled to is already part of your bankruptcy estate and subject to claim by the trustee. Two things to look at are: (1) when your case was filed to determine what percentage the trustee would be entitled to; and (2) if you have any remaining exemptions that could be applied to protect any portion of the refund. Our trustees advise people at the time of their 341 meetings that they need to provide a copy of their tax return when it is prepared. They are also told not to spend any portion of the refund until it has been determined if the trustee will require a turnover of the funds.
Answered on Feb 06th, 2013 at 8:02 PM
You will be required to turn it over to the bankruptcy trustee if you file a chapter 7 or 13.
Answered on Feb 06th, 2013 at 7:54 PM
You are mistaken. If you have filed bankruptcy, when you file your tax return will not prevent your Trustee from being able to take your tax refund. Furthermore, if you fail to file your tax return on time and turn over your refund, your bankruptcy discharge can be cancelled. Others have tried this trick and have regretted it.
Answered on Feb 06th, 2013 at 7:53 PM
Deborah F. Bowinski
At this time of year your bankruptcy trustee has the right to take your income tax refunds from you regardless of when you file your tax returns. Your trustee may ask you to sign a Stipulation to provide copies of the tax returns and to turn over your refunds. Or, your trustee may file an intercept with the state department of revenue and the Internal Revenue Service and receive the refunds directly. If you filed with an attorney you should speak with him or her. If you did not file with the advise of counsel then losing your tax refunds may be an expensive lesson for you.
Answered on Feb 06th, 2013 at 7:53 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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Whether or not you get to keep your refund has less to do with when you file than whether or not you listed and were able to exempt the refund on your schedules.
Answered on Feb 06th, 2013 at 7:24 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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If you filed a Chapter 7 any property you received up until 180 days after you filed is property of the estate. So if the tax refund deadline is before the end of the 180 days period, it is property of the estate and will be taken by the trustee unless you were able to exempt it.
Answered on Feb 06th, 2013 at 7:15 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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I'm sure your lawyer anticipated the refund & "wild carded it" as an asset in existence at the time of your filing. It doesn't matter when you file or get the refund it's yours if you were under the federal exemption scheme & therefore able to wildcard it, or it is so small the trustee will not want it, even if you're under the Texas exemption scheme.
Answered on Feb 06th, 2013 at 7:13 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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It depends on how much of a personal exemption you have left. If you have exemption left you can claim as part of your personal exemption.
Answered on Feb 06th, 2013 at 7:02 PM