One of our clients’ greatest worries is losing their tax refund. There is a common misconception that they will lose it for the year if they file a Chapter 7 Bankruptcy prior to acquiring the refund. However, it is truly much more advantageous to file Chapter 7 Bankruptcy before your tax refund due to recent law changes.
In a Chapter 7 Bankruptcy in Missouri, any portion of your tax refund attributable to the Earned Income Tax Credit or Additional Child Care Tax Credit is entirely excused before you acquire your tax refund. However, it is important to know after you have gotten your refund the Chapter 7 Trustee has the ability to take that money. It is also important to keep in mind that in the case that you spend that money before filing your case, the Trustee will ask for an itemization to find out the way in which you spent that money. If you feel you need to pay back a relative or friend that has been there for you, consider the fact that if you file a Chapter 7 Bankruptcy that might not be possible without the Trustee attempting to take back the money from them. The Trustee has the ability to take that money after it has been put in your account, so you will have a harder time saving up money as well.
Be sure to consult an attorney before your tax return if you are considering filing for bankruptcy. Our attorneys are skilled in dealing with bankruptcy issues, and we are here to assist you.

Are You Considering Filing For Bankruptcy?

If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.

James Roswold
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James Roswold is a Kansas & Missouri personal injury, workers comp, and medical malpractice attorney.