Q: Currently in chapter 13 bankruptcy in the middle district of Alabama, I know we have to report our taxes yearly, but do
They take our tax refund entirely? Or do we get to keep it?
A:
In a Chapter 13 bankruptcy, while all of your assets, including any expected tax refund, must be disclosed in the Bankruptcy Schedules that must be filed in the case, a debtor retains all his property, unless he chooses to surrender it to a secured creditor, or sell it, as part of the proposed Plan.
If your Plan has been confirmed, everybody involved, indeed, the whole world, lol, is bound by the terms of the Plan.
So long as you make the payments required by either the Bankruptcy Code (e.g., taxes and adequate protection payments to secured creditors) your wages, and other income, including tax refunds, are yours to spend or save.
Timothy Denison agrees with this answer
A: The Earned Income Credit is exempt, and is not subject to being turned over to the Trustee in Chapter 13 Bankruptcy.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
