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foreclosure, bankruptcy, will they try to take my tax money?

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Old Jan 6th, 2007, 02:36 AM     #1
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Exclamation foreclosure, bankruptcy, will they try to take my tax money?

My house is in foreclosure and I was mailed papers:
Motion for default judgment, prejudgment interest, attorney fees, costs and app for taxation of costs and affidavits in support and notice, and affidavit of foreclosure. In which the attorneys fees and prejudgment interest was approved. In the judgment papers, it was ordered we had a judgment for the entire debt of the home still and it will be sold at auction.
My husband and I are going to be filing for bankruptcy and have started looking for a lawyer to do so. I don't want my tax return money to be taken due to these judgments as I have other debts that need paid with that money. Will they take that money if we file bankruptcy now or can we wait to file taxes and then file bankruptcy so we can pay the lawyer up front?
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Old Jan 6th, 2007, 02:47 AM     #2
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Confused Re: foreclosure, bankruptcy, will they try to take my tax money?

If you got the papers stating that there was a judgment against you saying you owe the interest on the balance and attorney fees due to the foreclosure, then I am sure they would take that out of your taxes. I'm sordof dealing with the same thing too and my lawyer is not getting back to me quick about what is going on with my case. I too don't want my taxes taken from me since my lease is up on my house and I need my tax money to move. I hope that someone who knows more about this issue responds because I'd really need the advice as to what to do also about filing for bankruptcy. I want to think if I file for bankruptcy by the beginning of next month, I should be ok. When does a judgment like that report to the credit bureau? Please please please someone help us!
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Old Jan 7th, 2007, 12:07 PM     #3
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Default Re: foreclosure, bankruptcy, will they try to take my tax money?

Your tax return refunds will go into the bankruptcy estate once you have filed bankruptcy. You should review the issue with counsel as well before you file because the court can reach back 90 or 180 days and take funds in many cases as well...you need to review timing and your details with counsel.
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