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Can my husband keep his tax return check if I am filing bankruptcy and he is not.
Anonymous4 views3 answers
I am filing bankruptcy with the meeting of the trustee on 2/24/14. My husband is not filing bankruptcy he works and has always had. At this point we can't get our 1098 from the mortage company because we are in pre filing. Since we will not know our tax situation until after the meeting, if we get a check in April would he be able to keep it. Thank you for your time.
Peter Walter WestonBankruptcy AttorneyBellaire, TX ·
You should have reviewed this with your bankruptcy attorney before the case was filed, because the answer can not be determined from the facts in your post.
The tax return refund is likely jointly owned, and is property of the estate in most fact situations, unless exempted.
Your mortgage company should not be withholding your 1099 because of your bankruptcy filing status. the bankruptcy trustee probably will not close your case until he has an opportunity to review your 2013 federal income tax return.the income tax return should be scheduled as an asset in your bankruptcy schedules.it may or may not be exempt, depending upon whether you chose federal or state exemptions and weather you have any remaining wildcard exemption, in the event that you selected federal exemptions. This is a question you should definitely ask your bankruptcy attorney.
This requires a knowledge of Texas marital property law and the attitude of the Interim Trustee. For example, while all property acquired during marriage is marital property in Virginia, the Interim Trustees will generally not make a move toward a separate income tax refund without a declaration of how much each party is entitled to (during an active divorce for example) or if the refund is relatively small. If, however, it is more than about $10K (which many are), the Interim Trustee may very well make a run at it and could very well get some of it. You need to speak with a Texas attorney on this matter.