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Articles Posted in Chp 7 Bankruptcy; Tax Refunds and Bankruptcy

How Does Filing Chapter 7 Affect My Tax Refund

By Tracy Hirsch, Attorney

When a Chapter 7 bankruptcy petition is filed, there is a court appointed trustee assigned to your case. The trustee’s job is to determine if there are any unprotected assets that can be sold or collected in order to distribute funds to creditors in the case. A tax refund is an asset in a bankruptcy case, regardless of whether the refund has been received or not. Therefore, the refund, or expected refund, is an asset that must be disclosed in the bankruptcy petition and exempted by any applicable exemption.

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