Does a stay prevent my tax refund from being taken even if I owe taxes?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Does a stay prevent my tax refund from being taken even if I owe taxes?
I have an outstanding unemployment debt and tax debt, but I am relocating to another state and need that money for my expenses to move. Will they take them or not?
Asked on March 7, 2012 under Bankruptcy Law, Connecticut
Answers:
Alicia Beeler Villines / Law Office of Alicia Beeler Villines
Answered 13 years ago | Contributor
The two things you can count on are death and taxes. While it's possible that your refund will spend some time in a sort of financial limbo, in the end your refund will go to the governement. You don't give much detail about your "unemployment debt" (were you an employer? did you receive an overpayment of benefits?) but not all debts can be discharged in bankruptcy. Among these are debts for taxes and certain other debts owed to the government. If you owe one of these "Priority Debts" your best bet is to negotiate a payment schedule with the creditor agency BEFORE you file your bankruptcy. The payment(s) should appear both on your Means Test and your Schedule J (expenses).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.