ONLY $675 FOR A ST LOUIS CHAPTER 7
On many occasions, yes you will be able to keep it. But as always, it depends on a lot of factors. Those factors (the different kinds of circumstances that you can find yourself in) are briefly discussed below.
To begin with, it should be noted that a tax refund is considered to be like an asset like anything else that you own. And as such, the court considers it to be part of the bankruptcy estate (meaning that the Bankruptcy Trustee has the option of taking it from you). But whether you keep the refund depends greatly on what chapter of bankruptcy you file.
For instance, if you file a St. Louis Chapter 7, the time of year that you file is a huge factor. If you file a Ch7 in May, then obviously any tax refund you may receive for that calendar year will hinge in large part on how much more money you earn through December. So the bankruptcy trustee isn’t going to be too interested. On the other hand, if you were to file your case in December, that would be a different story. Let’s say you anticipate $6,000 in a tax refund. There is only a portion of that amount that can be exempted (i.e. protected), and the rest would go to the trustee for dispersal to your unsecured creditors. So very often in such a situation, a person will decide to hold off on filing the bankruptcy petition until the tax refund is spent.
$300 UPFRONT ATTY FEES FOR A ST LOUIS CHAPTER 13
But if you file a St. Louis Chapter 13, the rules are entirely different. If you file a Ch13 individually, and you receive a tax refund during the repayment period, then you get to keep $1,250 of it (and you may also keep whatever portion is attributable to the Earned Income Tax Credit, and most of the Child Tax Credit). If you are joint filing (you and your spouse), you may keep $1,500 of a tax refund.
LET US HELP YOU TAKE CARE OF YOUR DEBTS!!
So there are different rules depending on which chapter of bankruptcy you file. And the best way for you to understand your rights and options in regards to these refunds is to speak with a good St. Louis bankruptcy attorney!!
We have two locations: in Central West End of St. Louis, at 1 North Taylor, St. Louis, MO 63108; and in the Twin Cities of Festus / Crystal City, at 1000 Truman Blvd (Highway 61/67), Jefferson County, MO 63019. The initial consultation is free. So contact us today to learn more!!