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    Federal Exemption

    We are going to be using Federal Exemptions due to the fact that we have no equity in our house. We have been told that will allow us to exempt our tax refund of $8400.

    From what I understand, the way the homestead exemption works is that since we have no equity, we can exempt up to $10,125 of any property. Does "any property" also include any other money we can save up (such as the extra money every month we are now seeing since we stopped paying our CCs, or perhaps a cash gift from a relative)?

    Thanks

    #2
    "Any property" typically does include cash. Which chapter are you planning to file? Are you trying to keep your home?

    Unless this large refund is due to unusual circumstances, I strongly suggest that you find a much better savings account than Uncle Sam going forward

    Here's a link to the IRS's withholding calculator - http://www.irs.gov/pub/irs-pdf/p919.pdf . It's well worth figuring out how to put more of your hard-earned money somewhere gathering interest than giving that much cash to our government to use interest-free for a year.
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

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      #3
      We are hoping for a 7 but not entirely sure if we will pass the means at the moment.

      This is a typical refund for us, but I have already gone ahead and adjusted my withholdings so that this shouldn't be an issue going forward.

      When something like a tax refund or any other cash is exempted, does that also mean it cannot be counted as as income going forward? Or is that completely separate?

      Thanks

      Comment


        #4
        DID YOU GET TO KEEP YOUR TAX RETURN?

        Comment


          #5
          Originally posted by InSeriousDebt77 View Post
          From what I understand, the way the homestead exemption works is that since we have no equity, we can exempt up to $10,125 of any property. Does "any property" also include any other money we can save up (such as the extra money every month we are now seeing since we stopped paying our CCs, or perhaps a cash gift from a relative)?

          Thanks
          And if you are married that amount is x2..
          pa308 (equifax fico 6-21 471) 594 on 3-09 671 7-09
          filed ch7 6-12
          341 7-25
          Discharged and closed 9-24

          Comment

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