Legal Question in Bankruptcy in North Carolina

If you file chapter 7 and you owe no one but credit cards and you own no home if i file chapter 7 now will it have any affect on my 2011 tax return when i file i owe no taxes and would be entitled to get a earned income credit, I only make 19,000 a year


Asked on 10/20/11, 5:01 pm

1 Answer from Attorneys
Thomas Zimmerman Zimmerman Law Office

Filing of a Chapter 7 would have no effect on your earned income credit. It is possible that if you had cash or liquid assets in excess of $5,000 and you filed, exempting the $5,000 while you were entitled to the earned income credit, the trustee in a bankruptcy would try to reach the income credit. I doubt that he can or would try to do so, but you should consult a lawyer early to discuss strategy to assure the the trustee doesn't even think about it.

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Answered on 10/25/11, 6:25 am


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