My husband and I are going to file a Chapter 7 bankruptcy. All of our assets are exempt. We have no equity in our home. My question is what will happen to my income tax return? Should I file my taxes before I file Bankruptcy and if I do does that count as income on Schedule I? Our numbers on schedule J are close we have $17.43 left each month after expenses. We are expecting about $1700.00 back. We were going to use this on our property taxes that are past due. Please help, I have asked my attorney about this and he said if will count as income on the means test. We are already below the median income. Thanks for any advice.......
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Get your refund and spend it before filing if it can't be exempted.
A very few districts seem to count refunds as income. If that's the case where you are filing, see if the $1700 has any affect. If you're below the median now, I doubt it'll push you over the magicnumber. -
I know it won't hurt us as far as the means test, I just am not sure if it will count as income on schedule J, we will then show disposable income over $100 a month.Comment
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You'll need something closer to $200/month to be able to fund a Chapter 13.
What did your lawyer advise?Comment
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He just said that it will be added to our income, I took it he meant income on our means test. I just wonder if it will show as income on Schedule I?Comment
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