What happens to your tax Refund In Bankruptcy?
If you pay more tax in the course of the year than you actually owe, then you’ll likely be eligible to receive a tax refund once you file your tax returns. Tax refunds are an expected annual source of cash for a lot of Americans. According to IRS statistics from 2004 onwards, 77 percent of tax returns end up in refund checks. In 2018, the median federal tax return was $1,865.
This raises the issue: If you file to file for Chapter 7 bankruptcy, can you retain the tax refund you’re hoping to get? The answer on a How much Bankruptcy, as you can guess will be “it is contingent.” This article we will explain how you can protect your tax refund when you file bankruptcy in the most comprehensive way possible.
It’s there every tax time. You’re eager to receive an enormous tax refund check and you’re working to finish your bankruptcy filing. What will happen with your refund of tax in the case of bankruptcy?
If you did not receive your tax refund before the deadline for filing and the trustee is legally entitled to the tax refund as soon as you receive it or if your lawyer can assist in exempting the funds to be returned. Here at Bond & Botes we can accomplish this, and this is one of numerous reasons to employ a reputable and knowledgeable bankruptcy lawyer when you file bankruptcy protection.
Are you looking you to hold your money? Use it.
The money you receive from your refund is typically used to fund a range of expenses, which includes the majority of typical household costs, including:
- Utilize your tax refund to pay for your attorney’s fees as well as costs in your bankruptcy case.
- * To rent
- Mortgage payments
- HOA dues
- * Food
- * Clothes
- The cost of school
- Dental and medical expenses
- Repairs and maintenance of your home
- Payment for cars
- Repairs and maintenance of cars
Costs that are usually not permitted are:
- *Luxury items
- Reimbursement for the family member or friend of a
- Prepaid expenses (for example, you are unable to pay rent in multiple installments) or
- * Reimbursement for a credit card.
If you file during tax season. If you declare bankruptcy during tax time often need to figure out what they will accomplish with tax money that they recently received.
Utilize an exemption ensure reimbursement
You’ll be able to keep all of your income tax returns by declaring to be exempt property which trustees are not permitted to utilize. Alabama is a state with a wide-ranging exemption that can be used to cover the property you select you may utilize to secure the tax refund. Find out more about how to hold your tax refund. Similar to any court decision, make certain to speak with a reliable and experienced lawyer to assist you on this subject.
Bond & Botes helps people who are struggling with debt
If you’re having trouble paying your debts We’re located in the area and provide the opportunity to have a no-cost, confidential, face-to face consultation with an experienced lawyer. We also offer consultations for free at the convenience and security in your office or at home via video or phone should you prefer. Let us solve your financial problems. There’s no obligationto do so, which means there’s nothing to lose by getting the information you need to make the right decisions on what you can do to stop the cycle of stress caused by debt and move forward. We are able to answer all your questions related to Chapter 7 bankruptcy, Chapter 13 bankruptcy to stop foreclosure or wage garnishment getting rid of the threat of a lawsuit, avoiding liens and medical debts, payday loans, personal loans and credit card debt and more. We can ease your burden! We’re here to help and are here to help you!
State Bar of Alabama requires the following: State Bar of Alabama requires the following: “No representation is made that the quality of the legal services offered is superior to that of legal services offered by other lawyers.