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need to know this

if i and my husband file bankruptcy will we lose our income tax returns for years after?

Posted from: Prince Edward Island

One Response to “need to know this”

A licensed trustee said...

Only if you sign them over to your trustee when you file for bankruptcy.

The law requires your trustee to see that the tax return for the year before you file and the period from Jan 1 until the date you file (called the PRE bankruptcy period) are filed. Many trustees also file the second half of the year you file (called the POST bankruptcy return). Still others will offer to file your returns for one or two more years after that. If a trustee files your return the refund will likely be sent to the trustee.

The other way yuo might lose a number of years tax returns is if you sign a form when you file for bankruptcy instructing the government to send your trustee your refunds. You are not required to sign such a fomr, but many people do (we don’t even ask people to sign it as I disagree with the idea, but that’s just me).

So ask your trustee BEFORE you file how many tax refunds you are going to lose…