{"id":1747,"date":"2011-07-08T13:37:38","date_gmt":"2011-07-08T20:37:38","guid":{"rendered":"http:\/\/www.morrisonandnicholson.com\/ohiolawblog\/?p=731"},"modified":"2011-07-08T13:37:38","modified_gmt":"2011-07-08T20:37:38","slug":"will-my-income-tax-refund-be-taken-if-i-file-bankruptcy","status":"publish","type":"post","link":"http:\/\/henryclarke.co\/law-office\/will-my-income-tax-refund-be-taken-if-i-file-bankruptcy\/","title":{"rendered":"Will my income tax refund be taken if I file bankruptcy?"},"content":{"rendered":"

\"\"<\/a>When considering personal bankruptcy, many clients ask, \u201cWill my income tax refund be taken?\u201d<\/strong> The answer to that question is that, \u201cit depends\u201d, regardless of whether you are filing an Ohio Chapter 7 bankruptcy or an Ohio Chapter 13 bankruptcy.<\/p>\n

Whether an individual\u2019s income tax refund becomes a part of the bankruptcy estate depends on when the bankruptcy is filed with the United States Bankruptcy Court. \u00a0For instance, if an individual files bankruptcy after that individual has both filed and received their income tax refund, it is highly unlikely that their income tax refund will become a part of the bankruptcy estate. \u00a0However, if a person files for bankruptcy shortly before or shortly after filing their income tax return, then it is very likely that a person\u2019s income tax refund will become part of the bankruptcy estate. \u00a0This is because the person is yet to have received their income tax refund, and that money can be used to pay off the person\u2019s existing creditors.<\/p>\n

However, if you happen to file your income tax refund in or around the same time that you file for bankruptcy that does not necessarily mean that your entire income tax refund will become a part of the bankruptcy estate for the distribution to your creditors. \u00a0In Ohio, portions of your income tax refund attributed to the Child Tax Credit and the Earned Income Tax Credit cannot become part of the bankruptcy estate. O.R.C. 2329.66(A)(9)(g)<\/span>. \u00a0For instance, if you have an income tax refund for $4000, and $2500 is attributed to the Child Tax Credit and the Earned Income Tax Credit, then the most that can become part of the bankruptcy estate is $1500.<\/p>\n

It is best to address a qualified bankruptcy attorney with specific questions about the implications of filing for bankruptcy shortly after filing and\/or receiving your income tax refund. \u00a0Your bankruptcy lawyer can help you determine the timing that will be best for you.\u00a0 It is important to note, that you should never spend your income tax refund after it has been determined that it will become a part of the bankruptcy estate. \u00a0This can result in serious consequences, such as your bankruptcy being denied.<\/p>\n","protected":false},"excerpt":{"rendered":"

When considering personal bankruptcy, many clients ask, \u201cWill my income tax refund be taken?\u201d The answer to that question is that, \u201cit depends\u201d, regardless of whether you are filing an Ohio Chapter 7 bankruptcy or an Ohio Chapter 13 bankruptcy. Whether an individual\u2019s income tax refund becomes a part of the bankruptcy estate depends on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[261,310,311,497,537],"class_list":["post-1747","post","type-post","status-publish","format-standard","hentry","category-bankruptcy-2","tag-garnishment","tag-in-come-tax","tag-income-tax","tag-springfield-ohio-garnishment","tag-tax-return"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/posts\/1747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/comments?post=1747"}],"version-history":[{"count":0,"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/posts\/1747\/revisions"}],"wp:attachment":[{"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/media?parent=1747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/categories?post=1747"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/henryclarke.co\/law-office\/wp-json\/wp\/v2\/tags?post=1747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}