Skip to main content

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

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

Posted

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. Do not act on this information without engaging my services, this is for consideration only.

Mark as helpful

1 lawyer agrees

Posted

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!

Mark as helpful

1 lawyer agrees

1 comment

Asker

Posted

The exemption 14-4422 under pulic benifits lists EEC & Child tax credits...but ther is no detials I can find to make sure i understand it correctly...

Posted

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 accounted for in a response to an on-line question. Any answer, discussion or information is intended as general information only, is not intended to serve as legal advice or as a substitute for legal counsel, and should not be relied upon in making any decision. If you have a question about a specific factual situation, you should contact an attorney directly.

Mark as helpful

1 found this helpful

1 lawyer agrees

Posted

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 your area before acting on anything you read on the internet.

Mark as helpful

1 found this helpful

Bankruptcy and debt topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics