Bankruptcy

Don?t Lose Your Tax Refund In Bankruptcy

By Susanne Robicsek, North Carolina Bankruptcy Attorn

It is tax time again, and it bears repeating that tax refunds can be taken in bankruptcy if you aren’t careful.  Many people mistakenly think that if they haven’t filed the tax return before filing, it isn’t something that needs to be put into the bankruptcy petition.  Both Chapter 7 bankruptcy and Chapter 13 bankruptcy filers need to know what their refund will be before filing, schedule it as an asset in the petition, and exempt it. 

Bankruptcy trustees know to ask if people are due a refund, and they will check the tax return to see if there is any money due.  Tax refunds need to be listed and exempted just like any other cash or bank account since it is your money being held by the government until you claim it.  If you don’t know what your refund will be, you can still list an unknown amount and claim a set amount under any available exemption you have.  Your bankruptcy attorney can help you apply the exemption laws to your best advantage.

See also: 

Getting A Tax Refund? Just Say No To The Refund Being Loaded On A Credit Card! by Karen Oakes, Southern Oregon Bankruptcy Attorney

Tax Refunds and Bankruptcy: ?Tis the Season!  by Russell A. DeMott, Charleston Bankruptcy Lawyer

Save Your Tax Refund In Bankruptcy, by Susanne Robicsek, NC Bankruptcy Lawyer,  

Tax Refunds As Assets by Rachel Lynn Foley, Kansas City Bankruptcy Lawyer , 

Reduce Your Tax Withholdings to Avoid Paying the Trustee by Chip Parker, Jacksonville Bankruptcy Lawyer, 

Don?t Spend Your Tax Refund Without Speaking To Your Attorney by Wendell Sherk, MO Bankruptcy Lawyer,

Debtors Defeat Bankruptcy Trustee in Battle Over Tax Refunds byJill Michaux, Topeka Kansas Bankruptcy Lawyer.

Full post as published by Bankruptcy Law Network on March 01, 2010 (boomark / email).