QUESTION
If I filed Chapter 7, how do they determine how long & how much of my fed & state can they receive?
Asked on May 23rd, 2013 on Bankruptcy - Colorado
More details to this question:
I am not happy with the lawyer I hired, my fault. How can I determine how long & how much the court system will take from my state & federal returns? I have a minimum wage job and collect S.S. for 1 child. I filed on a house "$85,000" & 1 C.C. "$8,000". I owe $10,000 on the house I am in & have to do $5,000 in upkeep just to get insurance, paint, gutters, etc. Our furnace stopped working now we're without heat, floor furnace, so I really need that money. Prior to the day before filing, everyone of my bills were paid on time for 10 years plus & still are today! My child & I have Love & Faith but little else.
7 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The portion of the tax refunds has to do with the date that you filed your bankruptcy. If you filed half way through 2012 then you pay half of your 2012 tax refund to the trustee. I hope this helps.
Answered on May 27th, 2013 at 8:37 PM
Landlord & Tenant Attorney serving Thibodaux, LA
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The Louque Law Firm, L.L.C.
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You normally cannot keep any of it other than the Earned Income Credit if the trustee deems it to be property of the estate. In some states, you may not even be able to keep the EIC. Your other bills are not relevant.
Answered on May 24th, 2013 at 11:03 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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In Idaho, they take the amount of days before your bankruptcy for the year and that is the proportion of the income tax refund that is part of the bankruptcy estate. The overall refund is divided according to that percentage. Of course, the total amount is reduced by any exempt portions of the tax refund.
Answered on May 24th, 2013 at 1:01 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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I don't really understand your question. Maybe you should file an ethics complaint if your attorney didn't do a good job and won't return some of your funds? Are you saying your house is worth 85k and you only owe 10k on it, that you have credit card debt in the amount of $8,000 and that you need to do repairs of approximately $5,000 on the home? To cut to the chase, if you filed for bk recently, then any past federal and state tax returns that you did not exempt are going to be given to the trustee. Meanings 2012, 2011, 2010 etc.. All of your future tax returns are safe.
Answered on May 24th, 2013 at 12:55 AM
Unless your tax refund is eligible for an exemption, your trustee, on behalf of your creditors, is entitled to get the one next upcoming tax refund. That isn't your attorney's fault, it is just the law. I probably wouldn't have recommended bankruptcy for you with the size of debt you describe. Give yourself a raise by reducing the amount that is taken out of your paycheck and live with a smaller refund in April.
Answered on May 24th, 2013 at 12:39 AM
Deborah F. Bowinski
If you filed a chapter 7 case this year but before you received your 2012 income tax refunds then the trustee is entitled to the full refund above and beyond any exemptions to which you may be entitled and which have been claimed properly. Exemption statutes vary significantly state to state so this is not the best forum for that type of specific information.
Answered on May 24th, 2013 at 12:38 AM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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The amount of tax refund that will be taken by the trustee for the benefit of your creditors depends on (1) the amount the refund due to you on the day you filed; and (2) the amount of exemption available to protect it. Your attorney should have this information by now. Call him and get the answer.
Answered on May 24th, 2013 at 12:38 AM