Keeping your tax returns while filing for Chapter 7 Bankruptcy in Manhattan
Its coming close to tax time again (joy), and your trusty Chapter 7 Manhattan Bankruptcy Attorney has some inside help for you. If you’re planning to file for Chapter 7 Bankruptcy in Manhattan now, be prepared for questions surrounding your tax returns. I know that you’re thinking that you get your returns in April, and sometimes March, but many people file sooner, which means that the Trustees can ask about them much sooner.
In a Chapter 7 Bankruptcy in Brooklyn, Manhattan, or anywhere in New York City, the exemption (the amount you can keep) for tax returns is $2400 if you’re filing individually. HOWEVER, that also includes the exemption for money you already have in your checking account, savings account, or in your pockets. That means that if you’re receiving a tax return soon, you may be over the exemption limit and the Trustee may require you to fork over some moolah. So…what to do? You may want to hold off on filing until you receive your return, or you can look at what’s in your checking account at the time you’d like to file to make a determination as to whether you can keep that tax refund. In any case, there are various solutions to effectively handle this issue. Speak to your Brooklyn Bankruptcy Lawyer for more info about ways to save your hard earned returns.