Legal Question in Bankruptcy in Virginia
When filing chapter 7 bankruptcy, why do you have to surrender your tax refund to the trustee?
Why do some have to do so, and others do not?
Asked on 1/28/10, 4:15 pm
1 Answer from Attorneys
Daniel Press
Chung & Press, P.C.
It depends on what other assets you have and need to exempt. Assuming Va. exemptions apply, you have $5000 plus $500 per dependent, plus another $5000 if you are over 65 and another $10,000 if you are a disabled veteran, in so-called "homestead" exemptions that can be used for general assets such as equity in real estate, money in the bank, and tax refunds. If your refund is more than you can exempt, it will have to be turned over to the trustee.
Answered on 2/02/10, 4:30 pm
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