What Happens to My Tax Refund When I File Bankruptcy?

Typically, if you are expecting a good tax refund, you may want to consider filing your taxes first and then filing for bankruptcy protection after you have received and spent your refund.  Receiving a tax refund after filing for bankruptcy may allow the trustee to take the funds and distribute them to your creditors.  While it’s important that your refund is spent before you file bankruptcy, there are limitations for what you can spend it on.  It’s important to speak to an experienced bankruptcy attorney to discuss the specifics of your case before taking any action.

 

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