Q: Will I lose my tax return??? Filed chapter 7
I filed chapter 7 last month and last week filed taxes. I do expect a decent tax return due to having kids. Debt was mostly medical Bill's. I was getting grief from a lawyer for one of my non medical Bill's debt (was a gym) and do have a student loan from a school closed due to school being fraudulent. I meet trustee next week. And have yet to receive my tax return. I know the eic portion is protected. Was curious about the rest. Or if due to the fact most of my debt was charged off medical Bill's if they would proceed with taking my tax return. Tax return was almost 8k between state and federal and my debt was 22k with almost 12 of that being the medical. I do have a car I plan to reaffirm as well. My current lawyer says "let's see what trustee says" that I might not nessicarly lose it or I could lose part of it...
A: The answer depends on if same was exempted out. Some states follow the federal exemptions and some go with State Exemptions. Talk to your counsel about same and make sure it was properly exempted out.
A:
75% of the refund is an asset of the bankruptcy estate. There is an exemption for the Earned Income Tax Credit. Whether you're able to keep any additional amounts will depend on your other assets as IN only allows a $350 single $700 married exemption for intangibles.
Sometimes the Trustee has the right to seize amounts and they choose not to for administrative efficiency. It's just not enough to deal with since the Trustee gets a percentage but then must notify creditors that a dividend is available and deal with all those filings.
I would listen to your attorney, that's why you hired them.
A: You may be able to protect most or all of your refunds with your e emotions. Check with your lawyer and make sure they’ve been properly exempted out in your petition.
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