Tax refund during bankruptcy
February 5th, 2014 by Questions
We are in our 7th month of our 1st bankruptcy. During our initial assessment stages we disclosed that we were entitled to a tax refund from previous years. As it turns out that amount is approx. $7000. As I have searched and seen that this is considered an “asset” and we had disclosed it prior to signing our bankruptcy papers, is there any possibility that it will not count in our final numbers. We have been told that it is considered “income” by our trustee, but to us that does not make sense as it is NOT income as it goes directly to the trustee. If you could help clear up this confusion about our tax refund during bankruptcy would be greatly appreciated.
Basically we need to know if this is going to send our bankruptcy from 9 months to 21 months as we are near the limit for allowable income.
Posted from: Ontario