Can your taxes be taken for an unpaid bankruptcy?

Generally, returns of income taxes can be offset for amounts owed to federal or state agencies whether or not a bankruptcy has been filed or discharged. If the bankruptcy has not been discharged the returned funds belong to the bankruptcy estate and the trustee will determine the disposition of those funds. If the bankruptcy has been discharged resulting in a deficiency balance owed to a state or federal agency, income tax returns may be subject to offset to be applied to amounts owed.

The best advice is to contact a good, local bankruptcy attorney for counsel regarding what effects a bankruptcy might have on current or future assets.

Advertisements
This entry was posted in Finance. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s