-
My Income Tax Refund
My question involves bankruptcy in the state of: IL.
I wanted to know what I can do, if I was to file my taxes this year. I have consulted with a lawyer to file bankruptcy and have paid a fee to retain him. We have not gone further with this because of health issues at home with my family. I wanted to know if I could file my taxes and keep it. I have read to file and spend the money (wisely) before I go to court. But I have 4 kids and can't really just blow the money just to save it and have someone take it away. Believe me my kids and I need that money to last as long as possible.
Thanks.
-
Re: My Income Tax Refund
You need to report your income tax refund to the trustee. An income tax refund attributable to the year in which bankruptcy is filed & for any tax year ending before then - is property of the estate, even though you don't receive the refund until after the petition date. (Actually, a refund is prorated for the year in which the bankruptcy is filed.)
Whether the trustee will actually take the refund or not can depend on various factors - it can vary from jurisdiction to jurisdiction, depend somewhat on type of bankruptcy you are filing & the amt. of the refund.
Talk to your bankruptcy attorney.