Tax Refunds and Chapter 7 Bankruptcy

What tax rules apply to Chapter 7 bankruptcy? Can you spend your tax refund? What is the wildcard exemption? Learn more from Pelley Law Office, L.L.P.

2012-03-22

March 22, 2012 (Press-News.org) In only a few weeks, taxes are due. Which begs the question: if you are going through Chapter 7 bankruptcy or are considering filing for bankruptcy, what tax rules apply to you? Can you spend your tax refund if you are in the midst of bankruptcy? If you haven't filed for bankruptcy yet, should you use your tax refund to pay back some of your debts?

The first thing to note is that a tax refund is included as an asset for bankruptcy estate purposes. In other words, if your tax refund is not exempt, the bankruptcy trustee will collect your refund as part of your bankruptcy estate, which is used to pay back creditors.

Wildcard Exemption

If you have already filed for bankruptcy, you may be able to keep your tax refund through the wildcard exemption.

During your Texas Chapter 7 bankruptcy, debtors have the option to choose between state or federal bankruptcy exemptions. If you choose federal exemptions, you may exempt your tax refund under the wildcard exemption, Section 522(d). The wildcard exemption allows a debtor to exempt up to $1,150 of any personal property, and up to $10,825 more of any unused amount of the federal homestead exemption.

Should You File Bankruptcy Before or After Tax Time?

Now may be the perfect time for you to file bankruptcy. Since you are about to receive your refund, you may be able to use those monies to pay for any costs associated with the bankruptcy, including attorney's fees.

While it may be tempting to pay back a family member or friend who lent you money, or to pay off your credit card debt, doing so can lead to trouble later on in the process. The bankruptcy trustee may consider this "improper preference" of one creditor over another and may even ask you to pay back the money to the bankruptcy estate (even if you have already spent it).

The Interaction of Complicated Laws

The U.S. Bankruptcy Code, Texas bankruptcy laws and federal tax laws -- as well as the ways these laws work together -- are complicated. Therefore, it is in your best interest to speak with a bankruptcy lawyer.

Article provided by Pelley Law Office, L.L.P
Visit us at www.pelleylaw.com

ELSE PRESS RELEASES FROM THIS DATE:

Research identifies the beginnings of COPD

2012-03-22

The third most deadly disease in the U.S., chronic obstructive pulmonary disease (COPD), appears to be partly driven by the action of immune cells circulating in the blood entering into the tissues of the lungs. UC Davis scientists have discovered that this key process begins in the blood vessels around the large airways in the center of the lung. The discovery helps clarify how smoking can bring about this severe respiratory condition. The research also identifies a potential new target for directed drug therapy to counter the disease, which kills about three million ...

Structure of 'Salvia' receptor solved

2012-03-22

CHAPEL HILL, N.C. – At the molecular level, drugs like salvinorin A (the active ingredient of the hallucinogenic plant Salvia divinorum) work by activating specific proteins, known as receptors, in the brain and body. Salvinorin A, the most potent naturally occurring hallucinogen, is unusual in that it interacts with only one receptor in the human brain — the kappa opioid receptor (KOR). Scientists know of four distinct types of opioid receptors, but until now the structure of the 'salvia receptor', and the details about how salvinorin A and other drugs interact with ...

Changes To Protective Orders in Texas Help Victims of Domestic Violence

2012-03-22

Last year, the Texas legislature made changes to the law governing protective orders obtained to protect women from domestic violence. One significant change was the creation of a civil protective order with potentially unlimited duration. New Durations Previously, a two-year limit was imposed on any protective order (unless the offender was in prison), which could be extended by requesting a new protective order after the previous one had expired. However, this would mean the women would have to return to court and relive the violent experience. The new law permits ...

Ruling Allows Re-Trial of Suit Against Toledo Hospital

2012-03-22

The law offices of Spangenberg Shibley & Liber LLP are pleased to announce a recent ruling that will allow them to pursue a medical claim against Toledo Hospital. The facts of the case are clear. The firm's client, Gary Tisdale, was admitted to the hospital for abdominal surgery in 2002. His physicians ordered staff to apply external pressure leg cuffs post-surgery to prevent deep vein thrombosis, a condition where blood clots form in a deep vein, most commonly in the legs. Unfortunately, hospital staff failed to apply the external pressure cuffs and, as a result, ...

Most sinus infections don't require antibiotics

2012-03-22

EMBARGOED FOR MARCH 21, 2012, ARLINGTON, Va.] – The vast majority of sinus infections are caused by viruses and should not be treated with antibiotics, suggest new guidelines released by the Infectious Diseases Society of America (IDSA). Nearly one in seven people are diagnosed with a sinus infection each year. Although sinus infections are the fifth leading reason for antibiotic prescriptions, 90 to 98 percent of cases are caused by viruses, which are not affected by antibiotics. Used inappropriately, antibiotics foster the development of drug-resistant superbugs. "There ...

Perimeter Hotel Near Atlanta Announces the Economic Stimulus Package

2012-03-22

The Holiday Inn Express & Suites Atlanta N- Perimeter Mall Hotel, at Atlanta Perimeter Center, announces the Economic Stimulus Package. Available for a limited time, guests who book this package will be rewarded with a $25 gift card, per paid night, to one of America's favorite retailers like Best Buy, Target, Wal-Mart, Home Depot, and Amazon.com. Available while supplies last; some restrictions may apply. Rates start at $124.00 USD per night. A top choice among other hotels in Atlanta Perimeter, travelers are sure to enjoy their stay at the Holiday Inn Express ...

Team finds atomic structure of molecule that binds to opioids in the brain

2012-03-22

LA JOLLA, CA -- March 21, 2012 -- Scientists have for the first time determined the three-dimensional atomic structure of a human opioid receptor, a molecule on the surface of brain cells that binds to opioids and is centrally involved in pleasure, pain, addiction, depression, psychosis, and related conditions. Dozens of legal and illegal drugs, from heroin to hospital anesthetics, work by targeting these receptors. The detailed atomic structure information paves the way for the design of safer and more effective opioid drugs. "This finding is going to have a major impact ...

Atlanta Airport Hotel Near GA Dome Offers Nearby Lodging to the 2012 NCAA South Regional Men's Basketball Tournament

2012-03-22

The Hilton Garden Inn Atlanta Airport Hotel (North) offers convenient lodging to travelers attending the 2012 NCAA South Regional Men's Basketball Tournament. The Road to the Final Four , the NCAA South Regional (Division I) tournament will be held from March 23 - 25, 2012 at the Georgia Dome in downtown Atlanta, GA. Featuring the NCAA "Sweet 16 " and "Elite Eight " Rounds of the NCAA Tournament, this year's winner of the two-day event will be awarded a spot in the 2012 NCAA Final FOUR that will be held in New Orleans. "Conveniently located only ...

Cancer cells in blood predict chances of survival and can help target breast cancer treatment

2012-03-22

Vienna, Austria: Detecting the presence of circulating tumour cells (CTCs) in the blood of women with early breast cancer after surgery but before the start of chemotherapy can provide useful information about their chances of surviving the disease. CTCs are cancer cells which are detectable in patients with a solid tumour and their value in the prognosis of metastatic breast cancer has been known for a few years. Until now, however, there has been little information about their role in early disease. Results to be presented today (Thursday) from the first large-scale ...

Door2Tour.com Reports the Return of the Staycation

2012-03-22

Door2Tour.com has revealed that the 'staycation' could be making a comeback. The latest figures from the tour operator have shown that sales of UK breaks have increased by approximately 9% compared to the same period last year. This has been put down to the UK being under the spotlight during 2012. There are a variety of factors causing this resurgence in UK breaks with the main one being the UK playing host to some top events during 2012 such as the Queens Diamond Jubilee, The Olympics, the 100th anniversary of the maiden voyage of RMS Titanic and the 200th anniversary ...

Tax Refunds and Chapter 7 Bankruptcy

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: