TAX REFUNDS UNDER REVIEW BY BANKRUPTCY TRUSTEES by Dennis Babiniec

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This is the time of year that the bankruptcy trustees assigned to bankruptcy cases are reviewing each case to determine whether there are nonexempt tax refunds to be required to be turned over.  For cases filed in Colorado where the person filing has lived in Colorado for the last 2 years, the tax refund except for earned income credit or additional child tax credit is not exempt (can be required to be turned over by the trustee).

Therefore, the first step would be to prepare the tax returns and determine if there would be a tax refund and if so, if the refund is from earned income credit or additional child tax credit.  The portion of the refund that is not from earned income credit or additional child tax credit is not exempt under the Colorado exemptions and could be required to be turned over by the bankruptcy trustee.  Please see the "Tax Refund Strategies" blog below to get more detailed information for the options when filing bankruptcy.

 Dennis Babiniec
Bankruptcy attorney
10701 Melody Dr., Ste. 350
Northglenn, CO 80234
(303) 451-9110  posted: January 23, 2017 - Dennis Babiniec - Bankruptcy Lawyer - Blog
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