After you have filed chapter 7 bankruptcy and it is completed. Can the government take your future tax returns? Thanks!
2006-11-10 02:41:39 · 5 answers · asked by Nikki 2 in Business & Finance ➔ Personal Finance
I think these guys are confusing chapter 13 with 7.
You do not have to turn over future tax returns when filing Chapter 7. Once you get your discharge, that's it!
2006-11-10 08:25:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
State law varies, but in general, no. They can take return for the year you file. The trustee typically holds the return for distribution to creditors. Most of the time the refund will be prorated. Say you filed in July. Jan-June is pre file, so you should get that back once everything is distributed. June - Dec will be held for distributed to your creditors. You won't recieve anything back untill after the distribution.
So with CH.7 they will at least take a portion of the tax return for the year you file, but not years after.
2006-11-10 11:23:49 · answer #2 · answered by Brad 3 · 0⤊ 0⤋
The government can take your future tax returns for non-dischargeable debts (i.e. back taxes, student loans, child support)
Even if you are able to discharge all your debt, your Chapter 7 bankruptcy trustee may require you to turn over your refund (or a prorated amount) for distribution to your creditors. It depends on your state's exemptions. Talk to your attorney.
Also, your discharge can be revoked if you fail to cooperate with your case trustee - so if he/she tells you to turnover your refund, don't ignore their demand. Good luck :-)
2006-11-13 22:45:34 · answer #3 · answered by Dawn H 2 · 0⤊ 0⤋
Some debts are not dischargable in bankruptcy. Child support, federal taxes, property taxes, etc. In those cases, they may be able to do so.
2006-11-10 10:49:29 · answer #4 · answered by mazziatplay 5 · 0⤊ 0⤋
When we filed last October they took ours but we were told it depends on your Trustee
2006-11-10 10:50:32 · answer #5 · answered by Tara 5 · 0⤊ 0⤋