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  1. #1

    Default Can a Joint Income Tax Return Be Taken when One Spouse Files Bankruptcy

    My question involves bankruptcy in the state of: Connecticut

    My husband is the only income in the house so our income in based solely on his income. I am filing Chapter 7 on my personal credit card debt. I am wondering if they can tax our take refund if we file married joint and he is the only income or should we file married separate? We usually get a large refund that we use to catch up on our bills and do repairs around our house? We are filing in October so I am concerned about our 2012 tax return that we are not filing till February 2012?

    Thank You.

  2. #2
    Join Date
    Jan 2006
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    Default Re: Can Our Income Tax Return Be Taken when One Spouse Files Chapter 7

    I am wondering if they can tax our take refund if we file married joint and he is the only income or should we file married separate?

    If you don't file jointly, why would you (personally) file at all?


    http://www.ilnb.uscourts.gov/opinion...edoff/Ruhl.pdf

    anyway, while this is a case from Illinois, I believe the marital property laws are similar (not a community property state). Based on the reasoning in that decision, the refund would not be eligible for seizure by the trustee since your husband is the sole income in the house. That decision is basically reverse of yours. The husband filed BK and was the sole income. While the husband sought to protect 1/2 of the refund based upon the joint filing, the courts ruled that since he was the sole income, all the money refunded was rightfully his and subject to seizure. In your situation, with your husband being the sole income, all of the refund is his.



    There are a couple folks around here that are really knowledgeable of bankruptcy while I simply dabble. You might want to check back occasionally to see who else posts.

  3. #3

    Default Re: Can Our Income Tax Return Be Taken when One Spouse Files Chapter 7

    Thank You for response I'll check out that case. I hope they can't take our refund!

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