QUESTION
Does bankruptcy affect the income tax returns?
Asked on Mar 25th, 2012 on Bankruptcy - Mississippi
More details to this question:
Does bankruptcy affect income tax returns or probate court rulings as head of an estate in which the estate is awarded money from existing claims? And how long after filing until the wage garnishments stops?
3 ANSWERS
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Filing bankruptcy will not affect your tax return status. Garnishments are to stop immediately upon filing the bankruptcy.
Answered on Mar 29th, 2012 at 9:36 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Income tax returns must be filed as normal in a bankruptcy. If money is owed it must be paid. It could be included in a chapter 13 payment plan. If If there is a refund it is part of the bankruptcy estate. To keep it it must be claimed exempt. If some instances there won't be an exemption. Consult an attorney in this regard. Probate court proceedings will continue after bankruptcy. An inheritance is part of the bankruptcy estate. Wage garnishments are automatically stayed upon filing bankruptcy. As a practical matter, provide notice of the bankruptcy immediately to the court where the garnishment is happening as well as to the creditor who is doing the garnishing.
Answered on Mar 27th, 2012 at 12:59 PM
Samuel Lee Tucker
If "head of an estate" means executor, administrator or personal representative of a deceased's estate, the the personal bankruptcy of the executor -or whatever- would not effect the probate proceedings. The executor is required to disclose property he receives from the estate individually. A wage garnishment should cease immediately upon filing.
Answered on Mar 26th, 2012 at 6:13 PM