We file cp 7 bankruptcy a few months ago, it was discharged but open. The trustee requested that the IRS turn over our taxes when we file. We are amended our schedule and adding child tax credit, tax refund, and earned income credit, including homestead on schedule C and A/B schedule. We really need the return. Please help
Whether you can use Texas exemptions will depend upon whether Texas has opted in to allow use of their exemptions. You should have exempted your refund while your case was open. You may try to amend but to change from one exemption scheme to the State exemotions would be a trick at this point. Your attorney will probably want another retainer to conytinue.
It is understandable that you need your tax refund, but so do your creditors, unless it was properly exempted. The election of which exemption laws to use, is yours, and is usually determined before filing. After a discharge is issued, your election time is generally over.
You should do what the trustee asks, unless your bankruptcy counsel has a good reason to advise you otherwise. Your counsel should also be involved for any amendments. If the refund is burdensome to administer, such as being too small for example, the trustee may abandon it back to you.
General legal advice is offered for educational purposes only. A consultation with a qualified attorney is required to determine specific legal advice as to your situation and applicable law. We are a debt relief agency and we help people file for relief under the bankruptcy laws.
The best advice will be to ask your attorney. However if you dont have an attorney, depending on which exemption you use or was able to use then whether or not the tax refunds would be protected is another story. Under federal, if you filed with your wife (or husband) the wildcard exemption could protect up to around 24k if there was no home equity to protect (or limitation of the home equity) or any cash in possession or bank account. If you use state exemption, it may have been bc you have alot of equity in the hone, which would not protect cash or tax refunds.
It would largely depend on the equity in the home and from there if federal would still protect the home and the cash and refund from your tax returns.
Again if you have an attorney please spake with your attorney. If not, the credit that you mention are not exempt under Texas exemption generally. Other states do allow for such but again each state has there own exemptions and it is not universal
Hope this helps
The statement above is general in nature and does not constitute legal advice, and in no way be interpreted as legal advice. Consult with a local attorney in your area to receive an answer specific to your case. This information does not create an attorney-client relationship.
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