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When we adopted our son we were very stable financially but through a series of unfortunate circumstances(two extended medical leaves for my husband from his job) we ended up basically living off credit cards. We ended up filling bankruptcy in Louisiana in 2010. Our adoption credit has been seized by the court basically because they could not find any other cases where anyone in bankruptcy had received a adoption credit. Anyone else out there have this happen. We could really use this money to build up our savings, which is where our money for the adoption originally came from.
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Makes sense that they would take the money. If you owe any money to the Government, they will take what they can, including your tax returns until the debts are payed off. So, i would think that bankruptcy court would work the exact same. But then again, i dont know much about bankruptcy. Rach
Yes, they can take the refund, all tax refunds are eligible to be taken by the bankruptcy trustee. It is up to the trustee to decide if they take it or not. The only exception to this is if you filed for an exception when you filed the bankruptcy (just like you do with your 401k and savings). I'm sorry. It's not just about the ATC, though the ATC probably made it worth the trustee's time. Usually they only go after it if it's worth their time to. In this case it was a large enough amount to go after it.
Yes, they can take the refund, all tax refunds are eligible to be taken by the bankruptcy trustee. It is up to the trustee to decide if they take it or not. The only exception to this is if you filed for an exception when you filed the bankruptcy (just like you do with your 401k and savings). I'm sorry. It's not just about the ATC, though the ATC probably made it worth the trustee's time. Usually they only go after it if it's worth their time to. In this case it was a large enough amount to go after it.
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