Dittmaier v. Sosne

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About five hours prior to filing for bankruptcy, debtor received an income tax refund for her federal and state income taxes, including an earned income tax credit (EIC). The bankruptcy court exempted some of debtor’s 2012 income tax refund, but denied her claimed exemption of the EIC under Mo. Rev. Stat. 513.430.1(10)(a), requiring her to turn over the nonexempt portion. The court determined that the language of section 513.430.1(10)(a) does not exempt “public assistance benefit[s]” received by the debtor prior to filing for relief in bankruptcy court. In this case, the parties do not dispute that debtor received the EIC prior to filing for bankruptcy. Therefore, the district court correctly affirmed the bankruptcy court's judgment. View "Dittmaier v. Sosne" on Justia Law