I filed chapter 7 last year it has not been discharged yet. I still owe 2011 income taxes to state and Federal. I get a refund

Asked over 1 year ago - Jerome, ID

this year who gets the refund, the bankruptcy trustee or the state and fed tax commission

Attorney answers (3)

  1. Paula Brown Sinclair

    Contributor Level 20

    3

    Lawyers agree

    Answered . I respectfully disagree with Ms. Kalra. If you still owe for 2011, any refund available for 2012 will be applied first to that obligation. Any net refund will be subject to the claim of the Trustee on behalf of your creditors. The bankruptcy estate claim is a prorated share measured by the number of days in 2012 that had elapsed when you filed your bankruptcy petition. If you filed on October 1, the Trustee is entitled to a 75% share. In the event that the estate's share is below a certain point and there are no other assets to administer, the Trustee may release his claim to any of the refund.

    Best wishes for an outcome you can accept, and please remember to designate a best answer.

    This answer is offered as a public service for general information only and may not be relied upon as legal advice.
  2. Madhu Kalra

    Contributor Level 14

    1

    Lawyer agrees

    Answered . If you are entitled to get the tax refund this year, it will either be sent to you or IRS may credit it toward the 2011 taxes you owe.

    Madhu Kalra Kalra Law Firm 23720 Arlington Avenue, Ste 5 Torrance, Ca 90501 (310) 325-9012
  3. Diane L Gruber

    Pro

    Contributor Level 18

    1

    Lawyer agrees

    Answered . I wish you would have given us the figures. You will not receive your refund if you owe for prior year. If you do receive any of your refund the BK trustee MAY take it, depending upon what exemptions are available to you.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more

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