If I'm filing for chapter 7, how can I keep them from taking my tax refund?

Answer by  bubbyboy (9929)

It may depend on your state as to whether your tax refund will be taken. My husband and I filed Chapter 7 about 6 years ago and our refund wasn't bothered. Ask your lawyer.

Answer by  prissymissy (1895)

You will probably not be able to keep your tax refund. Since you are filing for chapter 7, all of your available assets will be taken to pay off your existing debts. Your tax refund will be taken to help pay off the debts that you have defaulted on and that are delinquent.

Answer by  tamarawilhite (17883)

Unless the debt is tax debt, student loan debt or back child support, they cannot take your tax refund away.

Answer by  Mary (2095)

If you have not yet filed, the ideal would be to spend the money on something that would be exempt in the bankruptcy such as food, clothing etc.

Answer by  gcmeyer2 (787)

This really depends on the court. The way your bankruptcy is filed will tell you if they can take your tax refund but you have to pay something.

Answer by  cynosure (376)

Generally, you cannot. Your tax refund is a prepetition asset, and is therefore property of the estate. However, under 11 USC 522(d)(5) you may (may!) be able to keep some.

Answer by  Latin4 (11170)

You can't, this is the process that any monies obtained will be applied to the owed money. Once these are paid then you will get the refund for that year.