Will my tax refund which is all from EEC be exempt in Maine chapter 7 bankrupcy?

Asked 9 months ago - Milo, ME

I did not have any federal taxes witheld in 2013 because I qualifed for EEC in 2012. Therefore my refund will be entirely from EEC. Is my refund mine to keep for an emergency fund when I file chapter 7? Can I use part of it to "buy back" property (family heirloom) that is non-exempt from the trustee?

Attorney answers (4)

  1. Brett D Weiss

    Pro

    Contributor Level 18

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    Answered . Do you mean EIC (Earned Income Credit)? If so, it might be exempt. If it is, you can use it to buy back a non-exempt asset from the trustee. If it is exempt, you keep it without needing to buy it back.

    The legal analysis of any situation depends on a variety of factors which cannot be properly represented or... more
  2. Blake Owen Brewer

    Contributor Level 18

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    Lawyer agrees

    Answered . You need to review this with a Maine attorney, you can find one on this web site using the Find A Lawyer tab. You need to understand the available exemptions. But if the cash is exempt, you can use it for any purpose you wish.

    I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice.... more
  3. Dorothy G Bunce

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    Contributor Level 20

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    Lawyer agrees

    Answered . Unless your state has a specific law or a wild card providing that this money is exempt, it probably isn't. I am attaching a link to a general description of the exemptions allowed in all 50 states. Hope this perspective helps!

  4. Brent J Jensen

    Contributor Level 13

    Answered . Only someone familiar with Maine bankruptcy law can tell you. Here in Utah the tax refund is the most often seized property in a Ch 7. In a Ch 13 the debtor is allowed to keep up to $1000 of the EIC tax refund. You need to speak with someone who practices in Maine to see what happens in your district.

    This is not legal advice and I am not your attorney until you retain my office. Always consult with an attorney in... more

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