Legal Question in Bankruptcy in Michigan

Refund of amended tax return after filing bankruptcy

I filed bankruptcy in 2008 and found an error in my 2007 return in my favor. If amended, does the bankruptcy court get the refund? Or can I keep the amended refund due to the tax year being prior to filing bankruptcy?


Asked on 2/15/09, 2:50 pm

1 Answer from Attorneys
Jerrold Bartholomew Priority Elder Law and Estate Planning, PLC

Re: Refund of amended tax return after filing bankruptcy

The amended return proceeds are property of your bankruptcy estate. Depending on your circumstances, the return may or may not be exempt property. If you are of modest means and the return is small, there probably won't be any problem.

You should talk to your attorney and determine whether the return can be exempted. If it can, the best practice would be to notify the trustee on your case with evidence supporting that the return would have been exempt property anyway. I believe that would probably be the end of the matter and you would be able to keep the proceeds. But the final outcome will depend on your exact circumstances.

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Answered on 2/15/09, 2:57 pm


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