Bankruptcy Tuesdays

Bankruptcy Tuesdays
January 22, 2019

This month we’ve been discussing tax refunds and how that may impact your bankruptcy case. Generally, refunds due to you are assets of the bankruptcy estate, and may be claimed by the bankruptcy trustee. Last week we discussed an exception to that rule, where the tax refund is due to the earned income credit or the additional child tax credit. There’s one other important exception: when you already owe income taxes from a prior year. In that instance, the taxing authority won’t issue you a refund but will apply the money you would otherwise be entitled to against the taxes you owe. This benefits you two ways: (1) there won’t be any refund for the trustee to take; and (2) your obligation to the taxing authority (which is generally not dischargeable in bankruptcy) will be reduced by the amount of the refund. More to come on tax refunds next week from our bankruptcy attorney, Jim Wholly. Have a great Tuesday!


Previous PostNext Post

Related Posts

Bankruptcy Tuesdays

For the previous three weeks, we have been talking about tax refunds, how you could...

The Importance of Tracking Your Expenses

Part of our Bankruptcy Tuesday series So you’ve decided to give budgeting a try. Good...

Filing For Chapter 7 Bankruptcy

Filing For Chapter 7 Bankruptcy

When money is tight and bills are piling up, you may feel like you have...

©2024 McCue Law Office. All Rights Reserved.
Powered by Top Rated Local® linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram