Contact Us
Phone: 423-205-7744
Location
4416 Brainerd Rd.
Chattanooga, TN 37411
Hours
- Mon - Fri
- -
- Sat - Sun
- Closed
Call Now 24/7 Free Consultation: 423-205-7744
Georgia Bankruptcy: Tax Debts & Tax Refunds
If you are filing bankruptcy, you may wonder how any tax refunds will be handled. What happens to tax refunds in bankruptcy ?
What Does a Tax Refund Have to Do with Bankruptcy?
A tax refund is money owed to an individual by the government because the individual overpaid taxes. The bankruptcy court recognizes any payment of money owed to the bankruptcy petitioner as an asset, similar to a bank account balance or real estate, so any expected or received tax refunds must be disclosed in the bankruptcy petition.
How Should I Notify the Bankruptcy Court of a Tax Refund?
In a Chapter 7 bankruptcy, if you haven’t received your refund, you need to disclose it to your attorney. Your lawyer may try to claim an “exemption” to help you keep the funds. (Bankruptcy exemptions are limited and apply to multiple types of assets such as bank accounts, other property, etc.) If you are filing Chapter 7 bankruptcy and you already received a tax refund before filing, then it is not an asset at the time of your bankruptcy filing. In this case, you would not be required to disclose the tax return or apply any bankruptcy exemptions to protect the amount.
Chapter 13 Bankruptcy and Tax Refunds:
A Chapter 13 bankruptcy lasts either 3 or 5 years. In some Chapter 13 bankruptcy repayment plans, the petitioner agrees to pay future tax refunds into the bankruptcy plan, but this depends on the payment plan presented (and approved) by the bankruptcy court. Not all Chapter 13 bankruptcy plans require the bankruptcy petitioner to pay their tax refunds to the court during their repayment plan. Suppose your Chapter 13 bankruptcy repayment plan is set up to pay your unsecured creditors less than 100% of the debts owed. In that case, you should ask your attorney about filing a motion requesting to keep all (or a portion) of any tax refunds during the payment plan so you can meet specific needs. The Trustee may request documentation to prove that the “need” is real and necessary, but this type of motion is usually granted. Discuss the details with your bankruptcy attorney.
Do you have questions about bankruptcy law and how to file bankruptcy ? The experienced Tennessee and Georgia bankruptcy attorneys at Kenneth C. Rannick P.C. can help. We help good people through bad times every day, and we can help you, too.
The post Georgia Bankruptcy: Tax Debts & Tax Refunds appeared first on Kenneth C. Rannick, P.C..
Schedule a Case Evaluation
Contact us now!
Homepage FCE Form
By submitting this form, you agree to be contacted by our law firm, either by phone, text or by email.
Hours
- Mon - Fri
- -
- Sat - Sun
- Closed
Flexible Appointment Scheduling
24/7 Phone Availability
*$0 down to get your Chapter 7 case started applies to clients who choose to file a Chapter 7 bankruptcy with the U.S. Bankruptcy Court through Kenneth C. Rannick, P.C. We will open a Chapter 7 file for a client with as little as $0 down, however, our office will not file a client's Chapter 7 without an affordable down payment on attorney fees.
*$0 down to get your Chapter 13 case started applies to clients who choose to file a Chapter 13 bankruptcy with the U.S. Bankruptcy Court through Kenneth C. Rannick, P.C. Our law office will file a Chapter 13 without requiring any costs or attorney fees paid upfront for qualified clients who 1) have not had a prior chapter 13 dismissed within the past year, and 2) are not trying to stop a foreclosure within 20 days of filling bankruptcy.We are a debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.