Income taxes, one spouse bk

[chercharities]

My husband filed ch 7 and had his meeting on Dec 6. We received a letter stating he had to give up his refund. We usually file jointly. He didn't even pay any federal withholding and only made $7000 in 2004. Can they take the refund? I made over $40,000 and paid a lot of withholding. I don't want to lose my tax return. What should I do?

[HHM]

It depends on the state, but generally, at least half that refund is yours and the trustee should turn around and send half to you.

[chercharities]

Can we file seperately? I figured them out seperately and my husband would have to pay. I would get a smaller refund, but I would get more than half. Is this allowed? BTW: We are in indiana

[HHM]

You may want to talk to a CPA about filing seperatly. Its almost never to a married couple's advantage to file seperately. Incidently, if he only made $7,000, why would he PAY.

Is Indiana a community property state?

[chercharities]

No, Indiana is not one of the community property states. I just feel that if I made the money and paid the money that no one is intitled to it but me. I know that the law doesn't care what I feel. If I file an injured spouse this could drag out for months. And I still may come up with nothing. The letter from the trustee stated that if his refund was under $1000 he wouldn't have to give anything. But OUR refund may be $3500.00. His alone would be -$56

[HHM]

Well, if Indiana is not a community property state, you might be alright. But you may need to take steps to protect your interest in the Tax Refund vis-a-vis the trustee. Did your husband use an attorney to file the BK, if so, talk to the attorney and find out specifically how it works in your area.