Tax Return

[talbot]

We submitted section 7 bankruptcy on October 7, 2005.On March 27, 2006 we receivd a notice in the trustee saying we had a need to start our entier 2005 tax return. Our concerns are:1. I believed the part of the reimbursement in the child tax-credit was exempt?2. Aside from Number 1 is she not eligible for a prorated sum on the basis of the day we submitted (280/365) or 76.712%Thanks

[Spangler]

Bankruptcy practice is extremely local The best source to answer this question is your attorney or an attorney who practices before your trustee.

[Avryll]

Thank You1. I got theidea from my attorney.2.
Therefore she may take 10/12 of the refund since we file in October 2005? (We had already received our 2004 refund before we filed the case.)

[Jonathan]

1 - Where did you receive that concept?2 - when you have not obtained your refund from the prior tax year whenever your situation is submitted, the Section 7 trustee might take the whole refund.Example: should you document Section 7 in May, 1999, and also you haven't obtained and invested your 1988 refund, the Section 7 trustee is likely to be eligible for the whole 1998 tax refund. The Section 7 trustee might take section of duty discounts for that year where the Section 7 is submitted. The total amount which he is able to consider is likely to be prorated on the basis of the quantity of weeks that have handed down the day the Section 7 is filed.Example: should you document Section 7 in May, 1999, 4 of the 12 weeks have handed whenever you submitted. The Section 7 trusteeis discuss is 4/12 (or 1/3) of the tax return. You'll need to spend the Section 7 trustee 1/3 of the refund whenever you obtain it.

[Bonner]

1 - Then ask your attorney to cite you the law that covers that.2 - Sounds right.