I want to file bankruptcy in March of 08. I wouldnt file until after I cashed my income tax check so that I could pay to file. My question is, if I get a 5000 dollar income tax check, I spend a 1000 on the bankruptcy, do I get to keep the leftover 4000 and spend it on whatever I want? And what about the following years when I file my income tax, do they get taken as well? I would be filing a chapter 7 I believe. If thats the one that writes off your debts.
2007-12-04 10:44:39 · 15 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
We are very young and the reason we get so much back is because we are very poor with 3 kids that are very young too. We can not afford to pay back all that we owe. If we tried to it would take years to do so. We cant afford an attorney to ask these questions.
2007-12-04 10:51:38 · update #1
If you can't afford to pay back what you borrowed, why did you borrow it in the first place? That's no different than stealing, in my book. Take that $5000 and use it to pay off some of your creditors. Do teh right thing and don't teach your children that it's ok to stiff creditors and be a deadbeats.
2007-12-04 12:54:25 · answer #1 · answered by Gerry H 3 · 1⤊ 0⤋
Don't you have an attorney? Ask those questions of him. That's why you're paying him all that money.
Edit: If you don't have an attorney, where did the $1000 go? It costs only a few hundred to file bankruptcy. Also, the Court will assign your case to a trustee. The trustee will be able to answer those questions.
2007-12-04 18:48:25 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I believe that they will take it if you have it available, but check it out. The Bankruptcy Court will have literature covering this.
It will also say what the situation is in terms of how long the recovery goes on for. In UK there is a period where all income is administered (for a year now in UK). There may be a sinilar period in the states and it may vary from state to state
Yahoo or Google it
monitored
2007-12-04 18:52:05 · answer #3 · answered by Thunderstorm 2 · 0⤊ 0⤋
Without knowing what state you live in, no one can say. What you can keep depends on your exemptions, set by state law. Some states allow you to use either state or federal exemptions. It also may depend on whether you own a house or other property with a lot of equity. The following years would not be a problem. You might have a problem qualifying for a chapter 7 if you are overwithholding.
2007-12-04 18:56:04 · answer #4 · answered by thylawyer 7 · 1⤊ 0⤋
See a bankruptcy attorney, laws have changed. Wouldn't $5000 help you to avoid bankruptcy? It stays on your credit for 10 years, had many negative aspects to it. Do you have secured of unsecured debt?
Basically though, income tax returns are yours to keep unless you have federal obligations to pay, student loans, child support to name a few.
2007-12-04 18:48:49 · answer #5 · answered by Anonymous · 2⤊ 0⤋
Depending on other factors, any refund might be part of your exempt assets. Before you do anything else speak to a real attorney before, preferably before the end of the year since you might find filing by December 31 to be the best move.
Remember the free legal advice you get her costs you nothing and is worth every penny.
2007-12-04 18:52:07 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Its a lot more than simply filing of your debts. You are allowed to live in certain areas, and but certain things. You have to rent a house, not pay for one. Because the govt would have to pay for the house, hence all debts.
Make SURE your SURE about this before you do it. Its a life changing thing...
Dont do it to make all your debt go away. A year from now your going to wish you didnt...
Nick
2007-12-04 18:49:11 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Filing for bankruptcy is not as easy as you think. It was easy back then. You MUST go for credit counseling and pay it out of your pocket before you do that. I think it's a federal law for what I understand. Don't screw up your credit nor screw up the economy simply because you want the easy way out!
2007-12-04 18:50:35 · answer #8 · answered by ProArtWork 4 · 1⤊ 0⤋
You may have to show where the money went. You have to have a reasonable answer for it (you can't say you spent it on a cruise). Chapter 7 will not affect future tax returns; once it's discharged, you're done with it.
2007-12-04 18:50:02 · answer #9 · answered by Anonymous · 1⤊ 0⤋
You need to speak to a bankruptcy attorney to get those questions answered.
2007-12-04 18:48:11 · answer #10 · answered by Mark A 6 · 0⤊ 0⤋