Filing for Chapter 7 bankruptcy can be a stressful endeavor, regardless of the reprieve it offers. And with most people, the motivation behind filing for Chapter 7 bankruptcy tends to be wiping out their debts. But as the Bankruptcy Attorney in St. Peters Mo Charles Huber, will tell you, there is another side to Chapter 7 bankruptcy. That is, whether you have any assets that are eligible to be turned over to your bankruptcy trustee.
With most people, the only viable asset they can turn over is their tax refund. A tax refund is essentially a reimbursement of any excess amount paid to the state government or federal government. In most cases, it’s avoidable, provided you update deductions with great accuracy and fill out your tax forms correctly. But if you do find yourself eligible for a tax refund, it can be a great reason to celebrate, especially if you’ve filed for bankruptcy.
However, it’s crucial to consult with your bankruptcy attorney before turning over your tax refunds. This will ensure that you realize the maximum benefits from your tax refunds for the given year for which you filed for bankruptcy.
Tax Refund Attorney:
As with most things in life, timing is everything. In this case, the date on which you filed for bankruptcy is an important determinant of whether you can turn over your task refund to your bankruptcy trustee. According to the Bankruptcy Attorney in St. Peters Mo if you’ve already received your tax refund at the time you are filing for bankruptcy, that is nothing more than money in your account. That means you will need to spend it before we can file your bankruptcy case. In such an instance, it’s best to consult with your bankruptcy attorney to establish the best way to spend that money.
On the other hand, if you would like to file for bankruptcy but are yet to receive your tax refund for that particular year, the nature of your tax refund will also dictate whether you can turn it over or not. For instance, if your task refund consists of refundable credits such as earned income credit, that money may be exempt. If not, however, you may have to turn over your task refund to your bankruptcy trustee.
Bankruptcy Attorney in St. Peters Mo
In a nutshell, we recommend to consult your bankruptcy attorney before filing for bankruptcy or before you receive your tax refund. If you are looking to file for bankruptcy, Chapter 7 or otherwise, the Bankruptcy Attorney in St. Peters, Mo, Charles Huber, is here to answer all your questions.