Hi! I live in Colorado and my husband and I are planning on filing ch 7 bankruptcy. We are planning on going to a lawyer for a consultation, but can't until my husband can get some time off work. So in the meantime I'm trying to educate myself about all I can regarding bankruptcy.
My questions currently are about tax refund exemptions.
According to http://www.bankruptcyinformation.com/CO_exemp.htm it says "The full amount of any federal or state earned income tax credit refund" is exemptable. So, what does that mean? We do qualify for EITC, but I'm sure it's not ALL we're receiving in a refund this year. So does that mean that whatever amount of our refund IS from the EITC is exempt, but the rest has to be turned over? It can be used for necessities, right?
We're hoping to file for our refund next week. And we desperately need the money back. We're a family of 5, all need clothes, car need works, I need new glasses, need to pay off student loan (federal, not private, so that should be fine to pay off, right? Since it can't be discharged?), need food for the house (ramen sucks), pay back rent (we've been paying partial rent for months), hoped to pay ahead on rent (since my husband's job doesn't pay enough by itself for us to pay rent and still eat) etc.
My husband thinks it means that if we (for example) receive $9000 in a refund, but $4000 is from EITC then we only have to show that we spent $5000 on needs. Is he right?
I'm really confused. And financial stuff goes right over my head, so please talk to me like I'm a 6 year old. Thanks!
My questions currently are about tax refund exemptions.
According to http://www.bankruptcyinformation.com/CO_exemp.htm it says "The full amount of any federal or state earned income tax credit refund" is exemptable. So, what does that mean? We do qualify for EITC, but I'm sure it's not ALL we're receiving in a refund this year. So does that mean that whatever amount of our refund IS from the EITC is exempt, but the rest has to be turned over? It can be used for necessities, right?
We're hoping to file for our refund next week. And we desperately need the money back. We're a family of 5, all need clothes, car need works, I need new glasses, need to pay off student loan (federal, not private, so that should be fine to pay off, right? Since it can't be discharged?), need food for the house (ramen sucks), pay back rent (we've been paying partial rent for months), hoped to pay ahead on rent (since my husband's job doesn't pay enough by itself for us to pay rent and still eat) etc.
My husband thinks it means that if we (for example) receive $9000 in a refund, but $4000 is from EITC then we only have to show that we spent $5000 on needs. Is he right?
I'm really confused. And financial stuff goes right over my head, so please talk to me like I'm a 6 year old. Thanks!
| 341: 2009-12-14: | DISCHARGED: 2010-02-09 
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