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tax return & bankruptcy

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sunshyne_828

Guest
What is the name of your state? CO

I have seen so many conflicting answers to this question so i will ask here...

#1 -- My friend filed ch 13 bankrupcty last August, it was discharged in December and he is making his regular payments for the next 3yrs. His attorney told him he would probably still get his tax refund each year. He is concerned because he has already filed back in the middle of Jan and still hasnt received his refund - it is just over $4000. He has always had extra money pulled out each week for income tax because he had to pay a large sum a few yrs back so he now gets really large returns because of this. Will he ever see this money?

#2 --- I filed ch7 in November and am awaiting my discharge which should come thru about the middle of March. Should i wait to file my taxes or does it matter? I am expecting $1200 back?

Thank you for your help!
 


abezon

Senior Member
1. The IRS got hit with a worm program Jan 25 and no one got refunds that week. Everything was delayed a week. He will probably get his money, unless the BK trustee filed a lien on his refund. He should change his W-4 to have significantly less withheld. He can apply the extra $$ in his paycheck to the BK payments.

2. Did you list the refund as an exempt asset? If you exemted it, go ahead & file. If you didn't, wait until you have the discharge or amend your exempt property list.
 

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