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Back Taxes,filing bk and tax refund

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    Back Taxes,filing bk and tax refund

    We are in the process of filing for bankruptcy. chapter 7. We have back taxes we owe,, about $7000 from one of my husbands jobs that was 1099. so we have not gotten a refund in about 2 years. We have our meeting with our lawyer wed. What I want to know is,, when we file,, for BK what will happen to our tax refund? We have not filed our taxes yet. Would we have any chance of seeing a refund check this year or will they take that since we filed chpt 7?
    Thanks

    #2
    I don't think you'll get your refund...

    If you file your taxes before filing for bankruptcy, any refund goes to the old tax debt. If you file for bankruptcy first, your tax refund becomes part of the bankruptcy estate and goes to the trustee. UNLESS you can exempt part of it, but even then the IRS may still be able to hold it since you owe them. (That part needs to be asked of your attorney.)
    Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
    (In the 'planning' stage, to file ch. 13 if/when we have to.)

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