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I filed chapter 7 in March 2012. how much of my tax refund do they get to keep this year. Arizona.

Yuma, AZ |
Filed under: Chapter 7 bankruptcy

had a compromise which I have paid in full to the trustee, so when I file taxes they said they get a prtion of my refund. How much can they keep?

Attorney Answers 4

Posted

Unless you worked out a different deal with the trustee and assuming you are using the calendar year as your tax year, the trustee can keep about 1/4 of your refund (or maybe a little less, depending on the exact day in March you filed). Usually how it works with tax refunds is as follows (assuming your tax year is based on the calendar year, which starts on on January 1): The trustee is entitled to take the portion of your tax refund that accounts for up through the time of year you file. So, if you filed on March 31, 2012 and received a tax refund of $1,200.00 for tax year 2012, the trustee is entitled to take 1/4 (3/12) or $300.00 of your refund. The earlier in the year you file, the more of your tax refund you will get to keep. If you filed bankruptcy later in the year, say November 30, 2012, the trustee will be able to keep 11/12 of your refund or $1,100.00 of the $1,200.00 refund.

Please note that the information provided is for informational purposes only and does not constitute, and should not be considered legal advice. Transmission of the information contained here and receipt by the reader is not intended to create and should not be construed as creating an attorney-client relationship. The bankruptcy law services described herein are with respect to bankruptcy relief under the Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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Posted

The answer depends on a number of factors. You are not going to get an answer here, and, if you don't have a lawyer, you probably won't know until after the fact. Also, you may be due a portion of your tax refund after the liquidation into your case, and you won't know how much you should get back, or what you need to do to get it back without an attorney.

If you have an attorney, ask your attorney. If you don't have an attorney, you should get one because it may end up costing you more not to have one.

The DiGiulio Law Firm, LLC. Phone: 888-540-4529 Website: www.atl-law.com Atlanta, Marietta, Lawrencevile, Duluth, Alpharetta, Buckhead The information you're reading is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, or other communications should be taken as legal advice for any individual case or situation. Viewing the general information here does not constitute an attorney-client relationship. Please contact 770-309-9551 for additional questions or to schedule for your free phone consultation. If this question or answer pertains to bankruptcy, please be advised that we are a federal debt relief agency. One of our areas of practice is to help people file for bankruptcy relief and protection under the U.S. Bankruptcy Code.

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5 lawyers agree

Posted

My colleagues are correct in their sound advice, but i would also add that any deal you cut with the trustee would have to have been approved by the bankruptcy court, so look at those papers as there is almost certainly some mention of the refund as well as what it is you will need to turn over.

Good luck to you!

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5 lawyers agree

Posted

How much can they keep? The pro-rata share from the day of filing back to the first of the year. In other words, if you filed on day 100 of the year. They get 100/365 of your tax returns.

There is no guarantee the Trustee will actually take the money. It will depend on a number of factors that cannot be known. So it is a crap shoot whether the Trustee will take the money.

Additionally, it depends a lot on the Trustee's policy.

Good luck.

Jim Webster
www.jpwlegal.com

1845 S. Dobson Rd. Ste 201
Mesa, AZ 85202

(480) 464-4667
Jim@jpwlegal.com

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.

If you live in Arizona, please contact me for actual advice; this is just speculation. It certainly is not legal advice. I don't have enough information to give actual legal advice. I can only take the limited information presented and provide a idea of what you might do and how it may turn out.

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