One of the questions we get fairly frequently, as Riverside Bankruptcy Lawyers, is whether people can keep their tax refund. You’ve paid into your taxes all through the year before, and now you’ve got enough deductions that you’re expecting to get a refund. There’s just one catch: you’ve filed for a Chapter 7 or Chapter 13 bankruptcy.
We know that you really can use that money, at times like this, but the money in your government tax refund is considered an asset. Being an asset of the bankruptcy estate, it will be acquired by the trustee and used to pay off your creditors.
We at the offices of Harold D. Thompson, Riverside Bankruptcy Attorneys, have 35 years of experience to help you find the best solution to your financial problems. If you expect to have a fairly substantial tax return next year, one solution to getting money right now is to put a large amount of deductions on your withholding, allowing you to keep as much money as possible, and use it right now.
As bankruptcy lawyers, one thing we tell our clients, if it’s possible that the trustee will take your tax refund to settle debts, is to spend the money before filing! Buy some household necessities, pay your insurance, and get the money out of your hands before filing for bankruptcy protection. Generally, practices like this will not create a problem with the bankruptcy trustee. Filing early to get your refund, also allows you to get money up front to pay your bankruptcy lawyer. It’s a sensible and legal way to afford your filing, and it allows you to use the tax refund money for something you really need: bankruptcy protection!
Bankruptcy can give you a “fresh start” in managing your debts. Don’t let your worries about money keep you from consulting with an attorney who can find a solution to managing your financial future. Call a Riverside County Bankruptcy Attorney TODAY at 888.558.2992 to get a FREE evaluation!
As Riverside Bankruptcy Lawyers helping people with Chapter 7 & Chapter 13 Bankruptcy debt relief we are proud to serve the following areas of Riverside County: Riverside, Palm Springs, Banning, Beaumont, Blythe, Calimesa, Canyon Lake, Cathedral City, Corona, Coachella, Desert Hot Springs, Hemet, Indian Wells, Indio, Lake Elsinore, La Quinta, Menifee, Moreno Valley, Murrieta, Norco, Palm Desert, Perris, Rancho Mirage, San Jacinto, Temecula, Wildomar and all unincorporated areas of Riverside County.
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