QUESTION

Will I receive my tax refund from 2013 after my bankruptcy was discharged in March 2013?

Asked on Jan 31st, 2014 on Bankruptcy - California
More details to this question:
I filed for chapter 7 bankruptcy in November 2012.
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6 ANSWERS

The bankruptcy estate is entitled to money, including a tax refund, owing to you on the date your case is filed.
Answered on Feb 14th, 2014 at 5:19 AM

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Typically the Trustee will have you sign a stipulation at the Creditors' Meeting to turn the refund over to the Trustee. For example, if you filed your BK on November 1st, 10 of the 12 months have gone by. The Trustee can take 10/12's of your refund, or 83% of the refund. If any portion of the refund is Earned Income Credit or Child Tax Credit, the Trustee can not touch that portion of the refund. Lastly, as a practical matter, if the portion the Trustee can take is less than a $1,000, they generally don't want to touch this amount because it is too small for them to fuss with (Trustees works on a 6% commission basis, and they don't like fooling with real small amounts because it is too much paperwork for the return).
Answered on Feb 05th, 2014 at 9:15 AM

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Bankruptcy Attorney serving Las Vegas, NV
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Your refund for the tax year 2012 is property of the bk estate. Your refund for the tax year 2013 is not. So for the refund you receive in 2014 for 2013 you should be able to keep that.
Answered on Feb 05th, 2014 at 9:14 AM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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You may receive the actual refund check, but you will be required to turn that refund over to your bankruptcy trustee unless you claimed an exemption for it on Schedule C. A small portion of your tax refund will be returned to you equalling about 1/12th of the total amount. Should you try to avoid doing this, you can expect big trouble in the future,
Answered on Feb 05th, 2014 at 9:13 AM

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As long as the trustee did not direct you to turn over the tax return to the court, you should be able to receive and keep your tax return for 2013.
Answered on Feb 05th, 2014 at 9:13 AM

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Chapter 7 Bankruptcy Attorney serving Woodland Hills, CA at The Law Offices of Marc Weinberg
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Filing bankruptcy has no effect upon when you receive your tax refund. ?The other question is, has it been determined that your refund will be exempt.
Answered on Feb 05th, 2014 at 9:12 AM

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