Bankruptcy and my Tax Refund
Q: My estranged wife of 6 years filed for bankruptcy in June of 2011 I did not find out she had filed the chapter 7 until Sept. of 2011 when I was contacted by the trustee attorney who had requested lots of stuff I didn’t have we discussed my personal situation and that was the end of it. I always file an extention on my taxes so my 2010 taxes were filed in Oct of 2011 we file jointly she sends her w-2 I filed got the refund in nov paid my bills with it as always. in Dec of 2011 I was contacted by the attorney who demanded I turn over the 2010 tax refund I told him I had spent it on my debts. I told him he should have notified me of that in Sept. he agreed. I am now being sued by the trustee for the 2010 tax refund I knew nothing about the bankruptcy and was not told I had to turn over the refund.
A: If a portion of the refund was based upon her refund then when you spent all of the refund you used a portion of her non-exempt assets to pay off your debts. Unfortunately, unless you received a substantial tax refund, the money that you would pay an attorney to represent you in this matter would probably be a substantial proportion of the money that the trustee is asking from you from the tax refund. Having said that, you should consult with an attorney to review your options.
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