Legal Question in Bankruptcy in Massachusetts
Bankruptcy and Tax Refunds
I have started the proceeding for filing bankruptcy. RIght before I filed I received a judgement against me. My question is I just filed my tax return and I am expecting a refund, will I not receive my refund, due to the fact I am filing bankruptcy and due to the fact I have a judgement against me?
Thanks
2 Answers from Attorneys
Re: Bankruptcy and Tax Refunds
Unfortunately, the answer about the tax refund depends on whether you claimed the refund as exempt on Schedule C. If you did and the exemptions are within the permissible limits, then you should be ok. The judgment would be a claim in the bankruptcy case but should not interfere with the tax refund. If you want more help with your case, please feel free to call me at 617-367-4260.
Re: Bankruptcy and Tax Refunds
If the judgment creditor was listed in your bankruptcy petition, this debt would still be discharged regardless of the creditor receiving a discharge. If the judgment creditor was not listed in your bankruptcy petition, it should be added to avoid any disputes concerning the discharge of this debt. The tax refund should have been listed on your schedule b (assets) and then exempted (if possible) on your schedule c. If you are unable to exempt the tax refund, it will go to your Chapter 7 trustee.
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