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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Can the bankruptcy court take my income tax refund in a chapter

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Can the bankruptcy court take my income tax refund in a chapter 7 filing and if so is there a time limit from the date of filing that they can take it?

Thank you for your question.

If the debtor is entitled to receive an income tax refund at the time of filing the chapter 7 bankruptcy, the income tax refund is considered an asset in the chapter 7 bankruptcy filing.The bankruptcy court can claim the refund for the benefit of creditors regardless of when it is actually received
Customer: replied 7 years ago.
I filed Pro Se in September and my bankruptcy has not been discharge as of yet. I was not due a refund at the time of filing and have not filed my income tax return yet. If you could please elaborate on your answer it would be appreciated.
typically the trustee would have informed you at the 341 hearing whether he was claiming the refund for the benefit of creditors. if you were not due a refund at the time of filing, you are not required to turn over the refund to the bankruptcy court
Customer: replied 7 years ago.

In the meeting of creditors the trustee basically addressed the entire room and said that they would be taking the refund of most of us and then added as a side note, "depending on when you file". He did not let me know specifically that he would be taking mine but that is why I thought that there was a time limit from the filing date.

you can contact the clerk of the bankruptcy court and find out if your bankruptcy was closed as a "no asset case". if it was, the trustee is not making a claim for your refund.
Ellen and 4 other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.

It has not been discharged yet but I will contact the court to see if it is listed as a no asset case. Thank you so much for your time. I appreciate it.

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