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Taxes and Bankruptcy
I just filed bankruptcy in the state of Ohio and they told me that I have to report my income tax return to the trustee's and people have told me that they are probably going to take all of my return. Is there no way I can appeal this or appeal to at least get a portion. I filed bankruptcy because I have no money. My tax return I need!!! I have children I am responsible for.
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Re: Taxes and Bankruptcy
Yes, you need to report your income tax refund to the trustee. An income tax refund attributable to the year in which bankruptcy is filed & for any tax year ending before then - is property of the estate, even though you don't receive the refund until after the petition date. (Actually, a refund is prorated for the year in which the bankruptcy is filed.)
Whether the trustee will actually take the refund or not can depend on various factors - it can vary from jurisdiction to jurisdiction, depend somewhat on type of bankruptcy you are filing & the amt. of the refund.