Several bankruptcy courts in Florida have held that an income tax refund payable to a husband and wife from their joint tax return is considered to be tenants by entireties money which is exempt if one spouse files Chapter 7 bankruptcy. Now, one bankruptcy judge disagreed and reached a different conclusion. Continue reading
Category Archives: Tax in Bankruptcy
How To Handle A Surviving Tax Lien After Chapter 7 Discharge
Old taxes may be discharged in Chapter 7 bankruptcy, subject to several conditions. Sometimes my bankruptcy clients contact me after they received their discharge and complain that there is still a tax lien on the title to their home even though they understood that the bankruptcy would discharge their IRS debt. Why is there still a tax lien if their taxes were discharged. Continue reading
Chapter 7 Debtor Defers Income Tax Refund And Protects The Money From His Bankruptcy Trustee
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A Chapter 7 bankruptcy debtor’s tax refund is non-exempt and is part of the bankruptcy estate. Continue reading
Avoid Forfeiting A Tax Refund To Your Chapter 7 Bankruptcy Trustee
There are usually several things you can do to prepare for filing bankruptcy if you can anticipate the need to file months in advance. Continue reading
Income Tax Season For Chapter 7 Bankruptcy Trustees
Its tax season once again. In the world of Chapter 7 bankruptcy, tax season means hunting season for Chapter 7 trustees. Continue reading
Client Seeks Bankruptcy To Avoid Imputed Income After A Foreclosure On Investment Property
Some people facing mortgage foreclosure consider filing bankruptcy to preclude liability for deficiency judgments. Deficiency liability is not the only problem associated with foreclosure; another issue is income tax from imputed income when a lender foregives part of a mortgage note for a property other than a primary residence. Continue reading
Chapter 7 Trustee Goes After 2009 Prospective Tax Refunds
Chapter 7 bankruptcy trustees may be more aggressively seeking your income tax refunds. Tax refunds are non-exempt money in most bankruptcy cases. Continue reading
Joint Tax Refund Not Protected As Entireties Asset
There have been several cases in recent years, after 2001, dealing with exemption in bankruptcy of joint tax refunds where only one spouse has filed bankruptcy. Continue reading
Question About Income Taxes In Chapter 7 Bankruptcy
Treatment of income tax debt in Chapter 7 bankruptcy is a complicated subject. There are many rules and exceptions to the rules applicable to determine if past due taxes can be discharged. I received the following question by email: Continue reading
Trustee Pursues Next Year’s Tax Refund This Year
In previous years Chapter 7 trustees would inquire about debtors’ income tax refunds after the first of the year through May or June. They would ask if the debtors had filed their tax returns, if they had received a refund which was still in their bank accounts, and if they had not filed, whether they expected a tax refund when they would file. Continue reading