I have a lot of questions

I am thinking of filing for bankruptcy but I would like to know –

What happens with my taxes? If I file for bankruptcy in January of 2010, and get a refund, does that get kept by the trustee? Also – what if I end up owing taxes? Do I still pay if I`ve filed for bankruptcy?

I have a leased vehicle that was co-signed for by my mom. I pay the monthly payment and have never ever missed one – will this be affected?

Posted from: Manitoba

One Response to “I have a lot of questions”

A licensed trustee said...

Any tax refunds you may be entitled to for the year you file for bankruptcy and all previous years will be paid to your trustee for the benenfit of your unsecured creditors.

So, if you file for bankruptcy before the end of 2009 then you will “lose” your 2009 refunds and any previous years you may still be owed. If you wait and file after January 1, 2010 then you will lose your 2010 refund, your 2009 refund plus any other previous years you may be entitled to.

If you owe taxes when your returns are filed the tax debt is included with your other debts as part of your bankruptcy.

In regards to the leased vehicle, as long as you keep the payments up to date, you may keep the car – it will not be affected by filing for bankruptcy.