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Bankruptcy Court Holds EITC Refunds Are Not Exempt From Creditors In Bankruptcy

Por: Forbes Business January 01, 2023

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The intersection of taxes and bankruptcy present interesting issues. A recent bankruptcy case demonstrated this by considering whether Earned Income Tax Credit refunds (and their New Mexico state equivalents) can be exempt from creditors in a bankruptcy proceeding. The case shows how the answer can depend on where you live! In this case, under New Mexico law, the bankruptcy court held that these refunds were not generally exempt from creditors.... + full article



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