You'll need to sign in or create an account to connect with an expert.
The courts may ask if you have a refund coming, so at the very least you should compute your taxes to see if you have a refund coming and then ask the bankruptcy attorney when you find out the amount of refund or balance due.
When a debtor files for Chapter 7 bankruptcy, all of the person’s assets become part of the bankruptcy estate, which is administered (controlled) by the Chapter 7 bankruptcy trustee. The Bankruptcy Code defines assets very broadly. It includes more than money in the bank or property, such as a car. A tax refund is an asset that the trustee can use to pay unsecured creditors. It is very likely that the trustee will ask about a tax refund at your meeting of creditors.
In Chapter 7 bankruptcy, the trustee can use the assets you have when you file for bankruptcy to pay off your creditors. You can keep any assets you receive after filing for bankruptcy, however. A tax refund can be tricky because it often involves a process that begins before the bankruptcy filing date and continues afterwards.
Source: http://www.nolo.com/legal-encyclopedia/can-keep-tax-refund-chapter-7-bankruptcy.html
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
rdgarza_428
New Member
bharatdave0
New Member
john14verse6
Level 1
trasee66
New Member
alejandrocastro8
Level 1