Bankruptcy and Taxes

The Effect Bankruptcy Can Have on Taxes and Refunds

I filed chapter 13 bankruptcy in Oct. of 2004. It will be paid out in 48 months.

My question is, if I get married in Jan. 2006 and my husband and I file joint tax return the follow year, how will bankruptcy handle my taxes because they keep them each year until my bankruptcy payments are paid in full.

Will they keep our whole tax refund, even though he had nothing to do with my bankruptcy.

Sheryl

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Possibly. You should read your Order of Discharge, consult your bankruptcy lawyer or even the person who serves as trustee.

You might have to file your taxes separately until the bankruptcy is sorted out.

That is good practice in any event. Don’t co-mingle your assets until your credit score starts to recover. If you future husband has a good credit score now, there is no reason to jeopardize it.

Use his good credit to keep the family going. Trying to get joint credit at this stage will likely mean you will be paying higher interest rates than necessary.

For a consultation with a local bankruptcy attorney, click here.

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