QUESTION
If I file chapter 7 bankruptcy in December, do I lose all my taxes?
Asked on Nov 09th, 2012 on Bankruptcy - Florida
9 ANSWERS
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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You will not lose your tax refunds if you claim them as exempt assuming you have enough wild card exemption to do so.
Answered on Nov 14th, 2012 at 5:09 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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If you are talking about your tax refunds then "it depends" on the trustee.
Answered on Nov 12th, 2012 at 11:52 PM
Unless the law provides you with an available exemption to protect your tax refund check for next year, it is possible that you would lose most of your tax refund - all of it only if you filed on December 31 or thereafter. So what exemptions might protect your refund? In Nevada, EIC is exempt, as it up to $1,000 on the wildcard exemption, unless used to protect some other asset.
Answered on Nov 12th, 2012 at 11:52 PM
Daniel James Wilson
I assume you are talking about your tax refund. Tax refunds are generally non-exempt assets. That means the trustee can demand you turn it over when you receive the refund. However the Earned Income Credit is exempt, so it depends on how much, if any of your refund is from the EIC. If you can wait to file BK until after you receive and spend your refund that would be preferable. You can use your refund to pay your attorney.
Answered on Nov 12th, 2012 at 11:51 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
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No you can exempt out any tax refund.
Answered on Nov 12th, 2012 at 11:51 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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Whether your tax refund, due in Spring 2012, depends entirely on facts you have not given us in your question. Depending on where you live, there may be enough exemptions available to protect your refund. Talk to an attorney before filing.
Answered on Nov 12th, 2012 at 11:50 PM
A tax refund is considered part of the estate in bankruptcy. It is also considered earned before the bankruptcy to the extent you have earned that money before you filed bankruptcy. If you have already received the refund and spent it, you will not lose it as long as you did not make certain preferential payments. If you have received your tax refund it is possible you could lose it. In Utah, there is no exemption for cash, which is what a future refund is considered. Sometimes a tax refund is too small for a trustee in bankruptcy to take. You should contact a bankruptcy attorney to discuss your options. Many attorneys offer free consultations.
Answered on Nov 12th, 2012 at 11:43 PM
Bankruptcy Law Business Attorney serving Asheville, NC
Partner at
Pitts, Hay & Hugenschmidt, PA
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You will probably not lose all of your tax refund: : it depends on the amount of the refund and how you have allocated your homestead exemption.
Answered on Nov 12th, 2012 at 11:22 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Lose taxes? What do you mean by that? Some taxes are not dischargeable in bankruptcy.
Answered on Nov 12th, 2012 at 11:16 PM