state/fed income taxes

[michele17]

What is the name of your state? MD

If you file before the new bankruptcy act Oct. 17 goes into effect and you file your income taxes for 2005 and are due a refund will the trustee automatically take your refund check or does that apply to only people who file after Oct. 17?

THANKS!

[Who's Liable?]

That applies to people who file before Oct. 17 and after... There is more of a chance of that happening if you file after Oct. 17 as most likely you will NOT be in a BK7, but will be pushed into a BK13...

We cannot tell you whether or not the Trustee will take your return as we have no idea what your filing looks like, but if it is a good sizable return, chances are, you will not see it as the trustee will most likely take it to pay back your creditors... Additionally, some situations demand that you inform the trustee about the size of your return, and if you fail to do so, the discharge can be reversed, and all those creditors are legally allowed to come after you again...

If you are thinking about BK7, do it NOW, and not after Oct. 17, as afterward, it will become VERY difficult to do a BK7... Plus you will have to pay for credit counseling, etc., etc...

[michele17]

What if you don't know your return will be a sizable amount? Plus, I'm filing jointly. Do they take that into consideration?

THANKS for you reply.

I appreciate the humor to! This site does seem to have alot of that

[michele17]

EXCUSE MY IGNORANCE but, why is this law being passed anyway? Creditor's get enough from people. They are allowed to charge late fee's for being one day late, high percentages. Bankruptcy has been around for as long as I have an now suddenly it changes? I guess we can't have everything stay the same.

[thogul@msn.com]

From what you say it seems to me you should only concern youself with last years refund.And you should be able to get a basic idea if you have not had any major changes your refund should be about the same.Our refund was not taken federal nor state.And on the advice of our lawer she said spend it on things like food rent gas cloths electric.since the tax year is dec 31 of a given
year i dont see what it has to do with now..I am colorado.

[Who's Liable?]

Originally Posted by michele17

EXCUSE MY IGNORANCE but, why is this law being passed anyway? Creditor's get enough from people. They are allowed to charge late fee's for being one day late, high percentages. Bankruptcy has been around for as long as I have an now suddenly it changes? I guess we can't have everything stay the same.

The new reform was passed thru mainly with HEAVY support from the major credit card companies... They got tired of too many people re-negging on their CC duties...

Additionaly, you must report any large sums of money that you get up to 6 months after your discharge... I can't quite remember if it 's filinf date or discharge, although someone will chime in shortly... So if you wait long enough, you may be required to notify the trustee of your 2005 tax returns...

That is why we urge people to do it NOW and not wait post Oct. 17... by then it will be nearly impossible for MOST people to do a BK 7