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What happens to your tax refund in bankruptcy?

The people who file for bankruptcy during tax season always ask us what happens to their tax refund. Does they still get it, or is it lost?

tax return and bankruptcy - Dallas bankruptcy attorneyMost of the time, if you’re in Chapter 7 bankruptcy, you’re able to protect your tax refund. Unfortunately for those in Chapter 13,  saving your refund isn’t as likely.

Tax refunds and Chapter 7 Bankruptcy

When you file for Chapter 7 bankruptcy, your tax refund is considered an asset – whether you’re received it or not. Just like your other assets, if your tax refund is “exempt,” it can’t be touched by the trustee. The amount of your refund that’s exempt will very from state to state, depending on the state allowed amounts. You might even be able to use the wildcard exemption (which can be used to protect any asset) if your state doesn’t have laws regarding the exemption of tax refunds.


By |2014-03-25T21:21:57-05:00March 25th, 2014|Bankruptcy, Texas Bankruptcy|

The Benefits of Filing Chapter 7 Bankruptcy

Chapter 7 Bankruptcy benefitsFiling for Chapter 7 bankruptcy is arguably the best plan for eliminating debt. It can wash away certain types of debt for good, cleanse you of your stress and financial worries, and free up income for your family. Best of all, it can give you a fresh start to rebuild your credit.

Here’s a more complete list of what Chapter 7 can do for you:

  • Eliminate certain types of debt permanently
  • Get rid of debt stress and worry
  • Keep and protect property you want to keep
  • Get out from under debt on property you are willing to say goodbye to
  • Stop lawsuits, creditor harassment and garnishments
  • Free up income for your family
  • Get into a position to earn more money and save
  • Let you start to rebuild your credit


By |2012-06-19T08:00:53-05:00June 19th, 2012|Bankruptcy, Texas Bankruptcy|

Fact or Fiction? If I file for bankruptcy in Texas, everyone will know.

Many people won’t even consider filing for bankruptcy because they fear that everyone they know will find out. It’s a valid concern, too. No one wants the whole world to know his or her private affairs.

That’s where we have good news. If you file for bankruptcy in Texas, the whole world won’t automatically know. (more…)

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