Can I Keep My Tax Refund if I File Bankruptcy?
January 6, 2012
It’s that time of year. W2s will soon be mailed out and the need to get organized to file taxes starts nagging in the back of our minds. If you’re contemplating bankruptcy or already have filed, you’re likely wondering if you get to keep your tax refund. After all, that refund, no matter how big or small, would help with a lot of bills right about now; right?
The Timing of Your Bankruptcy Filing Counts
Will you receive your tax refund before or after you file bankruptcy? Timing is important in your bankruptcy case and must be fully analyzed by a qualified bankruptcy attorney.
Timing matters for many bankruptcy issues such as:
• Keeping your tax return (as we discuss more below)
• Creditor harassment
• Garnishments
• Pending Liens
• Foreclosure proceedings
• Exemptions
• Repayment of loans to loved ones
• Lawsuits
• Qualifying for bankruptcy
Filing Bankruptcy after You Have Your Tax Return
If you file for bankruptcy after you’ve received your tax refund, your bankruptcy attorney can show you how to protect it through the purchase of exempt assets.
Exempt assets include a certain amount of equity in your house, car, jewelry, tools, and personal items. You can put your tax return into these exempt assets to protect it; exemptions all have set maximum levels that can be protected, so be careful not to exceed those levels.
Filing Bankruptcy before You Have Your Tax Refund
If you file bankruptcy before you have your tax refund, the bankruptcy trustee may attach it. The trustee may also attach any funds you’ve pre-paid or over-paid in the current tax year.
Where to Get Help Knowing When to File Bankruptcy
Bankruptcy, and the timing of filing, is a very specialized area of law; be sure your attorney focuses his or her practice on bankruptcy and helping people like you. We focus our practice on bankruptcy law and help people just like you. You can reach us at 513-793-6555 or Thomasjr@geygan.com.
We will gently walk you through the bankruptcy process, answer your questions, analyze your case, and aggressively fight for your legal rights. We look forward to your call, email or completing the form below.
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Will I Lose My Belongings During Bankruptcy?
January 5, 2012
We understand that you are, likely, very concerned about losing your belongings if you file bankruptcy. We commonly receive questions like these: “Do I have to give up my wedding ring?” “Can I keep my computer?” “What can I do to protect my home?” “What about my car? How will I get to work?” After all, you need the basics to start over and take care of yourself and your family.
Most folks are happy to learn that whether they file Chapter 7 or Chapter 13 bankruptcy, many belongings can be protected.
· Chapter 7 bankruptcy allows your belongings to be protected through exemptions. In fact, the vast majority of people, who file Chapter 7 bankruptcy, keep all of their belongings and assets.
· Chapter 13 bankruptcy allows you to keep whatever belongings you can continue to pay for.
If you have assets that don’t qualify with an exemption, a qualified bankruptcy attorney can show you how to protect them.
· Proper, lawful, pre-bankruptcy planning can help you keep more assets, and keep you from having problems with the trustee because of well intentioned mistakes.
· In addition, your bankruptcy attorney can show you how to pay the bankruptcy trustee so you can keep something of sentimental value or financial worth. For example, if your house has more value than is exempt, you can pay the difference between the exempt amount and the fair market value, allowing you to keep your home.
However, if you don’t have the cash to pay the difference (equity – exemption), or if you can’t make-up past and make future payments, you’ll need to turn the asset over to the bankruptcy trustee. This sometimes happens when people own expensive cars or houses.
Where to Get Help Protecting Your Belongings during Bankruptcy
Bankruptcy, and protecting your belongings, is a very specialized area of law; be sure your attorney focuses his or her practice on bankruptcy and helping people like you. We focus our practice on bankruptcy law and help people just like you, every day. You can reach us at 513-793-6555 or Thomasjr@geygan.com.
We will gently walk you through the bankruptcy process, answer your questions, analyze your case, aggressively fight for your legal rights, and protect your belongings. Your next step is to contact our office. We look forward to your call, email or completing the form below.
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