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When is a Creditor entitle to a copy of your Income Tax Return when you file Bankruptcy in Michigan?

Under the provisions of Bankruptcy Code amendments of 2005, you are required to provide a copy of your tax return to any creditor who requests it.  Section 521(e)(2) provides that you are required to provide any creditor a copy of your income tax return if you file for Bankruptcy in Michigan. But – timing of the Creditor’s request is critical.

Courts with reported decisions  (See  Fontaine, 397 B.R. 191; Collins, 393 BR 835) made it clear that the Creditor is only entitled to a copy of your return – if Creditor requests the return before you submit it to the Trustee.  These courts have held that if a Creditor requests your income tax return  before your attorney submits it to the Trustee, you are required provide it to the Creditor  “at the same time” you provide it  to the Trustee.

Creditor’s delay in an untimely request was fatal.

So, if your tax return is  sent to the trustee immediately on filing,  and the creditor is deprived of  §521 as a weapon against the debtor.

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