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Will the Bankruptcy Trustee Take My Tax Return?

Will the Bankruptcy Trustee Take My Tax Return?

: Richard West Law Office

trusteeWhen you are going through a Cincinnati bankruptcy, you will be assigned a bankruptcy trustee. This official determines the outcome of your proceedings. The rules and regulations are different for Chapter 13 bankruptcy and Chapter 7 Bankruptcy. In either case you will have to declare your tax return. In a Chapter 13 Bankruptcy it can be considered as disposable income which means you may have to forfeit the money received from it into your bankruptcy plan.

In a Chapter 7 Bankruptcy you also have to declare you are receiving or have received a tax refund. You have to declare your assets in this bankruptcy and your tax return is perceived as an asset. In either types of bankruptcy there are some steps that can be taken to ensure that you won’t lose out on your return. The timing is really important in respect to this tax money if you are going through a Chapter 7 Bankruptcy.

In the Chapter 13 bankruptcy you may be able to file a plan modification that will allow you to leave out your return money. In either case it would be beneficial for you to have a bankruptcy attorney assist with your bankruptcy proceedings, not only to deal with the issue of the tax return, but the many other aspects that can arise from these proceedings. How you file and how your fill out the information and even which bankruptcy you will be eligible for can create a great deal of confusion and frustration.