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Yes, You Can Pay 'Em, But You Can't Use That Tax Refund!

By Joseph McDaniel, Esq.

Guys, I get a kick out of everybody I get to talk to about bankruptcy law in Arizona.

Because everybody is exactly like that joke about the novices who want to smoke while they pray*.

So when I tell you that you can do something, that doesn't mean you can do it by an otherwise prohibited technology.

For instance, if I tell you about the redemption statute, that doesn't mean you can rob a bank to come up with the dough for the redemption!

So when I say you can wait until after you file your bankruptcy and get your discharge, and then pay back a buddy or a family member, that much is true.

But if your tax refund belongs to your bankruptcy estate, and it probably does, you can't use that to pay your friendly creditors!

I do give you points for trying, though!




*Two Jesuit novices both wanted a cigarette while they prayed. They decided to ask their superior for permission. The first asked but was told no. A little while later he spotted his friend smoking and praying. "Why did the superior allow you to smoke and not me?" he asked. His friend replied, "Because you asked if you could smoke while you prayed, and I asked if I could pray while I smoked!"

Full post as published by Arizona Bankruptcy Attorney Blog on December 26, 2010 (boomark / email).