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  1. #1
    Join Date
    Jan 2008
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    1

    Default Filing Taxes Before Filing Chapter 7 Bankruptcy

    if anyone knows the answer please i want to file chapter 7 but have not yet filed my taxes can i still file

  2. #2
    Join Date
    Jan 2008
    Location
    Alabama
    Posts
    114

    Default Re: Filing Taxes Before Filing Chapter 7 Bankruptcy

    you need to consult with an attorney, but typically when you file chapter 7 bankruptcy at this time of the year and you have not yet filed your tax return, any potential refund you are to receive is considered an asset in the bankruptcy case and depending on the exemptions allowed in the state you file in, you may have to surrender your tax refund to the trustee of the court to benefit your creditors.
    Some attorneys will tell their client to wait to file the bankruptcy until after they receive their tax refund and spend it, don't do this though without consulting an attorney first. If you do spend the money before you file, there are certain ways you cannot spend the money (i.e. paying back family members) because those could become issues in your bankruptcy case.

  3. #3
    Join Date
    Jan 2008
    Location
    Alabama
    Posts
    114

    Default Re: Filing Taxes Before Filing Chapter 7 Bankruptcy

    and then again if you were to wait to file the bankruptcy until after you spend your tax refund, you would not want to wait long. the tax refund could be considered income on what is called the "means test" and it could potentially make you not eligible for chapter 7. Another good reason to sit down with an attorney and ask all these questions before you file, and before you spend any of your tax refund.

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