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If an asset, together with a tax refund, is just not claimed as exempt on Plan C, the trustee handling the case will take a part of the refund and use the money to pay unsecured creditors.
If you don't listing your believed tax refund as an asset in your Routine A/B, you can't secure your refund by professing an exemption for it with your Variety 106C (Plan C).
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Nevertheless, determined by your repayment approach provisions, your trustee, and how much personal debt Source you might be having to pay, you may be able to keep the revenue tax refund if:
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Move 5 – Appointment of Trustee – The federal bankruptcy court docket will appoint a trustee to manage the executive tasks connected with your situation. The trustee reviews the bankruptcy petition manages the bankruptcy estate and oversees the sale of any assets to pay for creditors.
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In case you are looking at bankruptcy, you will have questions on what will take place towards your tax refund considering that property are presented to creditors to pay down debts.
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Lots of individuals stay up for their tax refunds each year. You may well be concerned about it For those who have submitted for bankruptcy. Will you lose it?
Owning an expenditure considered needed may well acquire some convincing of your local court system, but some general-recognized charges include things like: