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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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If I file bankruptcy either chapter7 or chapter 13, i was told

Resolved Question:

If I file bankruptcy either chapter7 or chapter 13, i was told the trustee may take my income check. Does the bankruptcy trustee have the right to my income tax check if fiked my tax return joint /married with my husband whom did not file bankruptcy with me because we won't be married at the time of filing, but will be to file our taxes.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 4 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification

WALLSTREETESQ :

Yes,

WALLSTREETESQ :

When you file a bankruptcy either a chapter 7 or chapter 13, your income tax refund, could be taken by the trustee, unless it is exempted by State law,

WALLSTREETESQ :

Most cases, an attorney advises individuals to wait to file several months after their refund is given, as the trustee may not come after it at that point

Customer:

could you please re-send the reply? Was not able to see your response

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification





3/6/12 12:32 PM



Yes,






3/6/12 12:32 PM



When you file a bankruptcy either a chapter 7 or chapter 13, your income tax refund, could be taken by the trustee, unless it is exempted by State law,






3/6/12 12:33 PM



Most cases, an attorney advises individuals to wait to file several months after their refund is given, as the trustee may not come after it at that point



Customer:

I realize the trustee will take my income check, what I do need to know is whether or not should me and my husband file married separate or married jointly. I believe my accountant feels we would receive a better tax return check if we file married jointly, so if I went that way and the tax return check is to b

Customer:

BOTH OF US, THEN CAN THE TRUSTEE TAKE THE CHECK. My husband has nothing to do with my bankruptcy, he wasn't my husband when I file.

WALLSTREETESQ :

If you file a joint return, the trustee can only go after your part of the income tax refund,

WALLSTREETESQ :

however, in this case, it may be better to file married but separate so their is no issue,

WALLSTREETESQ :

If you are expecting a refund, it is often to your advantage to hold off on filing your bankruptcy petition until you have received the money. You can use the refund for legitimate purposes.

WALLSTREETESQ :

People filing a chapter 13 bankruptcy should expect to include their tax refund as part of their assets listed on their schedule of income, assets and debts. When you are repaying the debt, under an approved, supervised plan, you may be required to turn over the tax refund every year. To protect yourself, it is often the best strategy to readjust your tax withholdings from your paycheck in order to increase your monthly take-home amount, but receive a small refund to be turned over to the bankruptcy trustee.

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