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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2830
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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How will filing for bankruptcy in 2010 affect me when I file

Resolved Question:

How will filing for bankruptcy in 2010 affect me when I file for my taxes? Will I still be able to get a refund? or will this money be considered additional income?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

You file taxes like you normally do.

Terry L. :

Did the trustee in your case, or your attorney tell you that you need to turn over your tax refund to the trustee?

Terry L. :

This would vary with your trustee, any available exemptions, when you filed the case, and how much refund you receive.

Terry L. :

If the trustee or your lawyer did not mention anything about it, then you should be ok, and can keep the refund.

Terry L. :

Some jurisdictions will make it cleat that refunds over a certain amount need to be turned in.

Terry L. :

If you filed before September, and were not notified about turning it over, you should be fine keeping it.

Terry L. :

If you filed later, then I would file taxes like you normally do, and put the refund in the bank, unspent for a few months.

Terry L. :

If you have gotten the discharge and your case is closed (you can call the court clerk to confirm) then you can keep the refund too. If the case is open, then you may want to check with your lawyer or the trustee.

Terry L. :

Thanks for your question, good luck.

JACUSTOMER-gvs1i17m- :

the attorney did not say that i have to turn over anything to the trustee

JACUSTOMER-gvs1i17m- :

my case was started in september and confirmed by november

Terry L. :

Oh, you are in a chapter 13?

JACUSTOMER-gvs1i17m- :

yes I am

Terry L. :

ok

Terry L. :

the easiest way to find out is to read your confirmed plan and the confirmation order.

Terry L. :

any requirement to turn them over would be stated in there.

JACUSTOMER-gvs1i17m- :

it does not mention anything

JACUSTOMER-gvs1i17m- :

do I have to include the bankruptcy when I file my taxes

Terry L. :

I have seen an increase in requests for returns, and refunds over $2500, but not all cases. If your confirmation order doesn't mention it, you should be able to keep it.

Terry L. :

There is nothing to do with taxes regarding the bankruptcy.

Terry L. :

so there is no deduction or form to fill out

Terry L. :

it would not impact your tax filing

JACUSTOMER-gvs1i17m- :

thank you I really appreciate your help

JACUSTOMER-gvs1i17m- :

my only last question is

JACUSTOMER-gvs1i17m- :

as long as I complete the 5 year plan all of my debts are discharged and no creditor is able to make any future claims against myself or my husband

Terry L. :

That depends on the claims, the plan etc. so that you should discuss with your attorney

JACUSTOMER-gvs1i17m- :

ok thank you

Terry L. :

good luck to you

Terry L. and other Bankruptcy Law Specialists are ready to help you

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