Legal Question in Bankruptcy in Minnesota

Is EIC a Refund?

We qualify for Fed and MN ''poor peoples'' credit. Filed Chapter 7 In 11/2006.

I was given to understand that a credit based on lack of income is more a welfare payment than a refund of taxes withheld.

We are filing under MN Law.

Are we going to have to give our large credit to the Trustee?

My attorney has been frustratingly vague about this.


Asked on 2/10/07, 10:08 pm

1 Answer from Attorneys
David Kelly-952-544-6356 Kelly Law Office

Re: Is EIC a Refund?

The rule is that everything goes to the trustee unless you can claim it as exempt.

So look at your Schedule C - that's where you make your exemption claim. What does it say about tax refunds? If your refund is not mentioned there, then it probably belongs to the trustee.

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Answered on 2/11/07, 8:41 pm


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