How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Roger Your Own Question

Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 27201
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
6704987
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

What is the formula to figure out how much of my next years

Customer Question

What is the formula to figure out how much of my next years tax return the trustee will be able to take? I am plannin on filing a chapter 7 bankruptcy at the emd of may. Thanks
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Roger replied 1 year ago.
Hi - my name is Kirk and I'm a Bankruptcy litigation attorney. Thanks for your question.

In a Missouri, chapter 7 bankruptcy case tax refunds are not specifically protected. However, Missouri debtors can take advantage of a wildcard exemption (up to $1250) that could be used to protect at least a portion of their tax refunds.

Thus, the trustee can take hold of your refund as long as you're in bankruptcy.
Customer: replied 1 year ago.
I do understand that to a sense, i have a couple hundred of my wildcard left that i will claim on my tax return, and the trustee will get the rest for this year 2013 (due to an identity theft issue i am still waiting for my tax return for this year). However i will not be in my bankruptcy at tax time next year, so how much of my next years tax return can the trustee take?
Expert:  Roger replied 1 year ago.
If you're out of bankruptcy, then your entire refund should be payable to you.
Customer: replied 1 year ago.
I thought i had read something about what percentage of next years tax return the bankruptcy attorney could take based on what month you file the previous year. So as soon as I get my discharge letter from the court, i dont have to worry about my tax refund for following years getting seized by trustee?
Expert:  Roger replied 1 year ago.
Income acquired AFTER the filing date is excluded from your bankruptcy, so income made the year after filing should not be subject to your bankruptcy or the trustee.
Customer: replied 1 year ago.
So income made after the month of may, which is june through december, wont be able to be touched by the trustee. However the months of january through mays income is subject to be seized by the trustee. So as my original question, whay is the formula or percentage of next years tax return the trustee can take, since he will be entitled to the months income tax refund of january through may.
Expert:  Roger replied 1 year ago.
There's no formula - only the wild card exemption.
Expert:  Roger replied 1 year ago.
Hi - -

I see that you rated the last response as poor, and I assume it's because there's no formula to determine this. However, there's no formula per se.

If you have expected income from a tax return for the year that you file, then you would have to list that as an asset and then claim your exemption to those funds. You can base your expected refund on what you've received back over the past 2-3 years.

However, you just have to claim the exemption when you file even though you haven't received the money yet. Hopefully, you can come up with enough exemptions to cover the 5 months that would be included in your filing.

Here's a good link you can read: http://www.bankruptcylawnetwork.com/will-my-chapter-7-affect-my-tax-refund-part-one/
Expert:  Roger replied 1 year ago.
Here's the way it works:

For the year before bankruptcy, any unspent tax refunds go to the estate because the refund is the debtor’s money that was unnecessarily paid to the IRS. It is treated like cash or money in a bank account.

For the year of bankruptcy, a tax refund based on income you earned before you file for bankruptcy goes to the estate. However, you can keep part of the refund to the extent that the refund is based on income earned after the filing date.

For the tax year after bankruptcy, you keep the full refund.

I hope this helps.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.
 
 
 
Chat Now With A Bankruptcy Lawyer
Roger
Roger
Litigation Attorney
1794 Satisfied Customers
BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters