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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We live in Illinois. We received a tax refund of $8222. The

Resolved Question:

We live in Illinois. We received a tax refund of $8222. The bankruptcy trustee is demanding that we turn over $4000.00 of the return. We are having our attorney request that we keep it on the grounds that turning it over would cause a hardship. We need it to outright by a second car for me to pick the kids up at daycare when I get home. My main question is can I have my attorney amend my bankruptcy schedule C to include $4000 under the Illinois Wildcard Exemption. We are already entitled to $750 dollars per person (me and my wife) and the child tax credit portion of the return. So according to my calculations with that being included in the schedule C and what we are already entitled to according to the confirmation order. We would be able to keep $7500. Am I correct?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

Thank you for your question.

Hardship is not a recognized exemption to allow you to retain the tax return. However you are correct that your attorney can file an amendment to utilize the $4,000 "wild card exemption". The $4000 "wild card" exemption can be "stacked" on top of the $2,400 motor vehicle exemption to create a $6,400 equity exemption of a motor vehicle.

Edited by FLAandNYLawyer on 2/6/2010 at 10:09 AM EST
Customer: replied 6 years ago.
an it be used for the tax return
Expert:  Ellen replied 6 years ago.
Yes the wildcard exemption can be used for the tax refund
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