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Expert: - 1/30/2009


Question
QUESTION: I filed bankruptcy and filed back taxes returns all the way to 2002.  My trustee took my 05,06, o7 tax refunds.  Can he also take my new refund.  My bankruptcy was supposed to be final a month ago.  I am confused.  Can he take money I was not owed and did not recieve until after I filed?

ANSWER: Any tax refunds to which you are entitled for tax years prior to the year you filed your bankruptcy case belong to the Trustee unless you have exemptions which protect the value of the refunds to be received under applicable law.  Just because you hadn't filed your returns doesn't mean you weren't owed the refunds.

---------- FOLLOW-UP ----------

QUESTION: I know but what about refunds owed to me after the date I filed? Does he get my 08 refund too?

Answer
When was your bankruptcy case filed?  You haven't disclosed that information.  If it was filed during 2008, he might be entitled to the portion of your refund attributable to the income earned up until the date you filed your case, but that would be difficult to calculate and I've never seen a Trustee do that.  Is he seeking to take your 2008 refund?

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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