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Bankruptcy Law/What is considered "tangible vs. not non-tangible"

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Expert: - 4/12/2007


Question


What I am trying to find out is an income tax return considered "tangible personal property"?  I think that the trustee or judge will look at this argument and say that an income tax return is considered "intangible" and not tangible and therefore this exemption could not be used, so could you please explain to me why this could be classified as tangible personal property?

Thanks again for your help,


This was my previous question:

Would an Income Tax Return fall under the category of "tangible or personal property"?  

I would think that this would apply to Indiana's Exemption
of "Intangible Property" with an exemption of $300?  Please help, if it would then I could use this as an exemption.  

Answer
The exemption that I found under Indiana law provides $100 on any intangible personal property, except money owed to you.
(34-2-28-1 (a)(3))

A tax refund is money owed to you. Therefore I feel that exemption does not apply to protect a tax refund. Even if it did, it only protects $100, and your refund is $300(unless the exemption was raised, I am not an expert on Indiana law?). Some examples of intangible property are things like the good will of a business, copyrights and patents. I still don't understand why you don't use the "wildcard" exemption? A tax refund is tangible property.

WILD CARD
$4,000 of any real estate or tangible personal property
34-55-10-2(b)(2)  

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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.

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