Will I lose my tax refund if I file bankruptcy?

Many of us are preparing to file our tax returns in the coming months.  Hopefully, you will be receiving a tax refund.  As I have learned over the years, many people have specific uses for their tax refunds.  Among them, many people pay their property taxes for the year or buy clothing for their growing children.

Accordingly, most people really need to retain their tax refunds for household necessities.  However, there are often debts that require attention also.  Keep the following in mind: In most Chapter 7 cases, debtors in bankruptcy are able to keep their entire tax refunds in Tennessee.  In Chapter 13 cases, the Chapter 13 Trustee typically allows the debtor to keep a portion of their tax refund in this jurisdiction.

Categories