Q: How does child tax credit affect Chapter 13 bankruptcy in Indiana?
I am currently undergoing a Chapter 13 bankruptcy. I recently received a child tax credit and am concerned about whether this will be considered an asset in my bankruptcy case. How might this affect my bankruptcy plan or payments?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
The treatment of child tax credits in Chapter 13 bankruptcy can vary based on your specific situation and timing. Your bankruptcy trustee will need to know about this income, as it could affect your disposable income calculations.
In Indiana, whether your child tax credit is considered part of your bankruptcy estate depends on when you received it and how you plan to use these funds. If you received the credit after filing bankruptcy, it might be considered disposable income that needs to be reported to your trustee. However, if you can show that these funds are necessary for your children's basic needs, you may be able to keep some or all of the credit.
You should contact your bankruptcy attorney right away to discuss this situation. They can help you understand your obligations and potentially file any necessary documentation with the court. Your attorney might also help you explain to the trustee why these funds are essential for your family's welfare, which could influence how the credit is treated in your ongoing bankruptcy case.
Justia Ask A Lawyer is a forum for consumers to get free 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 Justia and you, or between any attorney who receives your information or responds to your questions and you, 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.
