do you lose your tax return when you file for bankruptcy?

me and my husband are thinking of filing bankruptcy and i had heard that you lose your tax return is this true. we live in missouri.

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Posted June 25th, 2010 in Bankruptcy Q And A. Tagged: , .

6 comments:

  1. John Scott:

    If you file Chapter 7, it’s generally considered part of the bankruptcy as an asset. If you file Chapter 13, you may or may not keep the return depending on the terms of your plan. If most of the refund is due to overwithholding, the trustee generally will keep it. If it’s due to the EITC or child tax credit, you generally will keep it.

    June 25th, 2010 at 9:57 pm
  2. San:

    Not that I have ever heard

    June 25th, 2010 at 9:57 pm
  3. mbrcatz:

    Any tax return is an overpayment to the IRS – it’s an ASSET. If you file for bankruptcy, all assets can be distributed to your creditors.

    You can’t keep your money, AND wipe out your debts, at the same time.

    June 25th, 2010 at 9:57 pm
  4. taxreff:

    The second answer in this thread is correct. An anticipated tax refund is an asset which must be included in the bankruptcy estate.

    June 25th, 2010 at 9:57 pm
  5. wartz:

    This depends on your state law and the exemptions it allows. Any specific answer you get here is likely to be wrong. If you are thinking of filing for bankruptcy, you should consult an attorney and let him or her advise you how best to arrange your affairs for your benefit.

    June 25th, 2010 at 9:57 pm
  6. Doctor Deth:

    it’s a TAX REFUND, NOT a tax RETURN!
    Why does everyone call it that??????

    – You FILE a tax RETURN, you RECEIVE a tax REFUND – IF you had more taxes withheld than you owe.

    June 25th, 2010 at 9:57 pm

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