You are here:
- Home
- Business
- Corporate Law
- Bankruptcy Law
- Tax Refund
Bankruptcy Law/Tax Refund
Advertisement
Question
We filed bankruptcy this year. I claimed a tax refund exemption when we filed. I sent in my tax return showing the refund amount to my attorney as well as the Bankruptcy Court to make sure I was following the rules. My attorney cleared it and said I was allowed to keep the refund. 2 months later I received a letter from the Bankruptcy Court indicating that I'm in breach and I owe them the refund. My bankruptcy attorney won't deal with it unless we pay him $1000 to go to the hearing. Am I in breach if I claimed the refund as an exemption when I filed bankruptcy?
I am sorry, but I think it's your lawyer who is in breach!
However, there is so much more that I need to know before I can try to answer the specific question. For example, I don't know what kind of BK you filed, I don't even know what state you are in, I don't know the amount of the refund, and I would need to review all of your papers. That said, I do think your lawyer owes you a good explanation! Why did the lawyer think you can keep it, and why isn't this lawyer stepping up to defend his advice, and why isn't he or she explaining what is happening here?
I suggest you tell the lawyer that if you don't get a full and complete explanation that you will either get another lawyer to take over the case, or else go to the hearing to represent yourself, and that either way you will make sure the judge hears all about this!
I am not a big fan of people representing themselves, so I would prefer that you have legal representation. You lawyer owes you a better explanation beyond saying "pay me money". Without an explanation you don't know if it is worth while to spend money pursuing it.
Why don't you try seeing a different attorney? Most bankruptcy lawyers will give you a free consultation.
I truely hope this works out in your favor. I would never treat a client the way you are being treated.
Related Articles
Answers by Expert:
Los Angeles Bankruptcy Lawyer Leon D. Bayer
Expertise
Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/
Experience
Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.
Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.
Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.
Education/Credentials
B.A., J.D.
Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000
MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.
Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.
©2012 About.com, a part of The New York Times Company. All rights reserved.