Bankruptcy, Tax Returns, and Feeling Bad About it...

July 13, 2010 - PRLog -- Do I need to file tax returns? The answer is yes. You always want to file your taxes by the deadline each year. When you file for bankruptcy, either Chapter 7 or Chapter 13, you are required to present tax returns for the last four years. If you don’t have them filed, it is very important that you get them filed right away. Not having the returns filed, will cause problems with your case, and can even cause the case to be dismissed if the trustee does not have the requested documents.

What about my refund? If you are in a Chapter 13, you will receive a return up to $2,000 anything over this will be kept by the trustee and will be disbursed to the unsecured creditors. If you are in a Chapter 7 case, it will depend on your situation. If your attorney was able to protect the return, via exemptions, then you chances of getting the return back is higher. If it was not protected, then your chances of keeping the return become lower. If you are in a Chapter 7 and receive a refund, you must contact your attorney’s office prior to spending that money. If you spend the money and the trustee finds out that you have a return that you spent, you will have to pay that money back to the trustee. Depending on the trustee, they may have a payment arrangement to get it paid, but not always.

Additional questions that you have about your returns please make sure that you contact your attorney’s office first.

Filing a bankruptcy is a bad thing, but it happens. People do not just wake up one day and thing I’m going to go file a bankruptcy and the need is not there. Something has happened to you life financially divorce, job loss, medical illness, or some kind of bad choice. Buying a car you really can’t afford or a house and the property tax go up and change what the payment is now. SO the bankruptcy is there in the hopes that it can give us another chance to start over. Does it always make every thing perfect? The same question could be asked of a major operation like a heart by-pass.
A bankruptcy is a legal way to help when something has happen in our lives to were we can not pay the same bills that we could the day before. So this is a way to give you another chance to go on with your life to buy another car or house and some of the other finer things in life.

For more information visit http://www.bankrupcy-alternative.com/glossary.html or call us directly. Here is another bankruptcy article http://www.prlog.org/10790923-bankruptcy-keeping-in-conta... and here is another http://www.prlog.org/10790857-bankruptcy-when-to-give-it-... for your reading enjoyment.

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