legal  taxes


Question by  phammy (33)

If I file bankruptcy, what happens to my tax refunds?


Answer by  Balance2 (66)

The bankruptcy trustee, will most likely treat your tax refund as an asset or future income and may use this as part of a means test. Any previous tax refunds will have no impact on your current bankruptcy filing, however if you file for bankruptcy before filing your tax refund, you are in danger of losing it.


Answer by  WendyB (43)

Filing for bankruptcy doesn't involve your tax refunds. Bankruptcy is for things like credit card bills, hospital bills, automobiles, and mortgages. Sometimes you can include student loans. If you file your taxes, you will still get your refunds, unless you owe back taxes, child support, or some other federal thing like a school loan.


Answer by  MaryL (117)

It is entirely up to the trustee. Part of it may be applied to your debts. All if it might be applied to your debts. Or if you are lucky you will get all of your refund. Recently, I have seen people getting the majority of their refund and a small portion applied to debts.


Answer by  tamarawilhite (17883)

You will still receive your tax refunds if the state does not intervene. If you are behind on student loan payments or child support, they can take the refund.


Answer by  colshan (63)

I am considering filing for bankruptcy in order to eliminate most of my credit card debt. I believe I will be owed a federal tax refund next year. What will the federal government do with my refund?


Answer by  gamecocks1 (18)

Federal and state tax refunds are usually taken as part of a Chapter 7 bankruptcy. They might also have an affect on Chapter 13 payment plans.

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