Tax credits as property of the bankruptcy estate

In re Harris, Case No. 10-61610; In re Williams, Case No. 10-62781 states Child Tax Credits, Earned Income Tax Credits, and Making Work Pay Tax Credits are property of the estate to be treated in the same way (i.e., prorated) as garden variety income tax refunds.  These refunds are typically turned over to the Trustee for administration to unsecured creditors in Missouri; however, some Judges in the District of Kansas will allow Debtors to keep these portions of their tax refunds if they can justify how they would like to spend the refunds.

For more information, please visit or call Betsy Lynch, the Kansas City Bankruptcy Lawyer to schedule a consultation at 816.434.6616.

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