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.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Instructions for What Happens to My Tax Refund When I File Bankruptcy?, or any other Bankruptcy matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.