So you have prepared your tax return and you are getting a refund. Terrific! But if you are also planning on filing bankruptcy, you have to be careful. That tax refund is considered an asset in your bankruptcy. You need to protect it.
I once had a colleague tell me recently of a client of hers who filed in November of 2009, and at the meeting with the trustee the following January, had the trustee asking for 11/12ths of the refund (i.e. the amount that had accrued prior to the bankruptcy filing)!
You have been counting on your refund to do all sorts of things in your life, and counting on bankruptcy to get you back on your feet financially. It is therefore extremely important for you to tell your attorney about all of your assets when preparing your petition. Not doing so can cause you all sorts of problems. Doing so can allow the attorney to analyze your situation properly and maximize your chances of getting a fresh start while (hopefully) keeping all of your refund.
If you live in South Jersey and are considering filing bankruptcy, call my office at 856-432-4113 or contact me through this site for a free consultation to discuss your case. If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.
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