taxes
I`m a little confused about the tax situation. If my bankruptcy is discharged in Jan 2010 does my 2010 refund (if there is one) go to the trustee or just my 2009 refund?
Posted from: British Columbia
I`m a little confused about the tax situation. If my bankruptcy is discharged in Jan 2010 does my 2010 refund (if there is one) go to the trustee or just my 2009 refund?
Posted from: British Columbia
It actually depends on what you’ve assigned to your trustee. The refund for the year you file bankrutpcy (and any prior years) will automatically be sent to your trustee for the benefit of your creditors. This change came into effect July 7, 2008.
In addition, some trustee will ask you to assign your refunds for up to 2 additional years after your bankruptcy. For example, if you filed in 2009 some trustees will ask you to sign over your 2010 and 2011 tax refunds. We don’t do this in our practice, but it is not uncommon. Ask your trustee what their policy is BEFORE you file.