Legal Question in Bankruptcy in California

Future Income Tax Returns: Assets subject to garnishment?

I am a homeowner who normally gets back over 7 to

9K each year on my federal return. I am about to file

a Chapter 7 and would like to know if the Federal Court will withhold any future returns against the

unsecured debt I will claim in the Chapter 7.


Asked on 1/20/01, 8:29 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Future Income Tax Returns: Assets subject to garnishment?

First of all courts don't hold anything. When you file a chapter 7 all your assets become property of the Chapter 7 Trustee unless you have an exemption for that particular asset. Tax refunds (I assume that you meant refunds...you said "returns") that are owed to you on the date your case is filed are assets and must either be exempted under your state's exemption laws or the Trustee would be entitled to take them.

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Answered on 2/13/01, 7:57 pm
Keith Knochel Law Offices of Keith Knochel

Re: Future Income Tax Returns: Assets subject to garnishment?

They will most likely require the current tax refund, however the future refunds are considered post-petition and should not be considered an asset to the bankruptcy estate.

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Answered on 2/15/01, 1:14 pm


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