Bankruptcy Tax Refund Considerations

Summary

A tax refund from pre-bankruptcy income is part of the bankruptcy estate and may be claimed by the trustee. If you owe federal taxes, the IRS can offset your refund to cover the debt. This offset may reduce the bankruptcy estate but typically doesnt affect discharge. Child support modifications can be requested before discharge and are separate from bankruptcy. Indianas 2024 guidelines consider non-custodial income and medical bill responsibilities. Consult a bankruptcy attorney for personalized advice.

Full Conversation

I filed bankruptcy and will be discharged by April *, *. If I wait to file taxes until april *, * and get a refund of *.*, will I be able to keep that refund ?
Hi Renee! Generally, a tax refund that arises from pre-bankruptcy income is considered part of the bankruptcy estate. Since your discharge is on April *, *, any refund for income earned before your discharge could be claimed by the bankruptcy trustee. It's best to consult with your bankruptcy attorney on this matter to get specific advice.
Do you have any other questions?
What if I owe federal taxes from *? Does that refund automatically get applied to taxes I owed?
Hi Renee! Yes, if you owe federal taxes from *, the IRS can apply your * refund to pay off those back taxes. This process is known as "offsetting" your refund.
Do you have any other questions or need more information?
how does that affect the bankruptcy process
Hi Renee! If the IRS offsets your * tax refund to pay your * tax debt, this could reduce the amount available to the bankruptcy estate. It may not affect your bankruptcy discharge, but it's best to discuss this with your bankruptcy attorney for personalized advice.
Do you have any other questions?
Can I submit a modification for child support before my bankruptcy is discharged
Hi Renee! Yes, you can file a request to modify child support before your bankruptcy is discharged. Child support modifications are handled separately from bankruptcy proceedings and are based on your current financial situation. How has your financial situation changed since the original child support order?
Ex spouse makes significantly more income that he did with original child support order. Additionally, Indiana changed child support guidelines in * that change non custodial's responsibility to medical bills and factoring overall contribution based on income
Hi Renee!
You can certainly request a modification of child support if your ex-spouse's income has significantly increased and due to the changes in Indiana's child support guidelines in *. Here are some key points:
- Indiana's new guidelines consider the non-custodial parent's income and their responsibility for medical bills.
- You should file a petition to modify the child support order with the court.
Have you already spoken to a legal professional about how to proceed with this modification?