Find out about Dallas / Fort Worth Bankruptcy Law Firm Wins Decision Overturning Trustee's Policy Seizing Tax Refunds.
Fort Worth, Texas – January 12, 2013 One of the draw backs to filing consumer bankruptcy has been the issue of who gets to keep the tax refund – the trustee or the individual debtor. This has been a hotly contested issue around the country over the last few years. In many cases, the answer has been uncontested – the trustee gets to keep the tax refund.
Over the last year, all of the trustees in the Dallas – Fort Worth area have been filing hundreds of motions to compel debtors to give their tax refund money over to the trustees for the benefit of their unsecured creditors. In many of these cases, the courts have previously determined that these same families do not earn enough income to pay their unsecured debts. The Trustees boast of collecting millions of dollars for the benefit of these credit cards companies and other unsecured creditors when they would not have otherwise seen a penny.
The Hopping Law Group, PC sought to protect it’s clients by challenging this procedure. The Hopping Law Group, PC filed an objection to the trustees’ numerous motions. After substantial briefing of the issue and oral arguments, the Honorable Judge Russell Nelms of the Northern District of Texas Fort Worth Division ruled in favor of the Hopping Law Group, PC, holding that the trustees’ policy was not permitted under the bankruptcy code. Attorney Christine Magee of The Hopping Law Group, PC stated, “This was a big victory on behalf of our clients, which will extend to all debtors in the Northern District of Texas. We will continue to fight on behalf of our clients.”
Christine Magee is a Dallas / Fort Worth Bankruptcy Attorney with over 5 years of experience handling consumer cases.
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