Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hello, sorry for taking so long to get back to you. My trustee told me I had non-exempt property and my 2011 tax refunds as well as my stocks would be the property of the bankruptcy estate. I also had state and federal exemptions. All my exemptions were state but my stocks of $750 so I changed that to 550.37 subd. 24 and need to know if that will do it for those, will that protect them? I realized that I need to mark 18 and 21 of schedule B for the tax returns. My tax return may be around 3,000. Do I put that amound of value in both 18 and 21? How do I exempt them? I could not find any exemptions that seemed to apply.
Since I am doing this myself (foolishly) do I have to send a copy of my amended schedules to all my creditors? If so do I just send the pages I changed or the whole packet? Do I also include the amendment notification and verification as well as the signiture page? I appreciate any information you can give me. Thank you, Cindy
You are not allowed to use both state and federal exemptions - you must choose one of these, and use either the state or federal exemptions only.
1) Did you use the state or the federal exemptions?
2) When you said "2011" tax refunds, did you mean for the 2010 tax year (refunded in 2011) or the 2011 tax year (refunded in 2012)?
The Bankrutpcy estate is not entitled to any refund attributable to the period of time after you file your Bankruptcy.
1) When did you file your Bankruptcy?
2) Also, what did the trustee tell you to amend?
Is the income tax refund going to be based on taxes withheld from your regular paycheck, or other income.
If other income, what type of income?
The 550.37 exemption is not for regular income. The exemption for regular wages is found at 571.922(a), which you can see here: