income taxes help


If I have filed chapter 13 bankruptcy in the state of texas do I keep my income tax refund?

I live in the state of texas and I have been searching for the answer to rather or not I keep my income tax refund

Public Comments

  1. Do you owe back taxes? If there were any back taxes owed, a refund this year will be kept by the state or IRS to cover that debt first. After that, depending on the status of your bankruptcy (is there any unexcused debt pending for example) - you may have a lien on your social security number so the taxes won't be released until the lien is released. Since Chap 13 is reorganization of debts, not forgiveness of debts - you can expect, even if you get the refund, to have to use some or all of it, to pay off your debt. Check with whoever prepared your bankruptcy plan for the court to be certain if there are any provisions for taxes listed.
  2. I am sorry,but you have to turn in your tax refund unless you have good excuses(need money to fix house,cars,buy another vehicle,pay school stuff for you or your children...) write the letter to the trustee , if they ok,you can use the money,or they will let you know how much you can keep.Good Luck
  3. I am not sure about Texas, but you may want to check with your attorney and the person who is filing your taxes. As a general rule, I will tell a debtor if they owe money to anyone who can offset their tax refund they should send a copy of ยง341 Meeting of Creditors Notice along with a copy of Schedule E showing you listed Texas as a creditor in your petition. You cannot file your taxes electronically and get a rapid refund due to the documents you would have to send in.
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