Thursday, November 25, 2010, 12:42 PM
Posted by Administrator
This entry will not be about having to visit my Uncle's in Fairlawn, New Jersey, in the 60's and being attacked by women relatives wearing bright red lipstick. And I apologize for that.

This entry will be a boring recitation of the problem filing for bankruptcy so near to the tax-refund-time-of-year. Again, sorry...but if you are bored, there are three football games on TV, today and Taylor Swift has a one hour special beginning at 8:00. Also, the whole friends and family thing.

So, here goes the actual reason for this entry:
1) If you are thinking of filing bankruptcy and you anticipate getting a tax refund, it is a good time to get some advice about the effect of that tax refund has on when to file bankruptcy.
2) If you file bankruptcy near to the end of the year (like now) or if you file before you get your tax refund, the court appointed Trustee may demand that you hand the IRS's check over to him or her (the Trustee would get a fee and your creditors would get a few cents on the dollar as a dividend from your "estate").
3) Some refunds are exempt (the Trustee can't touch them)...the "Earned Income Tax Credit" is usually exempt.
4) You could file early, get your refund and spend the money on things like PAYING YOUR BANKRUPTCY LAWYER; getting your teeth fixed; fixing your roof. can't hide the refund money....
5) BUT, you may have enough in "exemptions" so that you can keep the tax refund money without having to do some (perfectly legal) things to shelter it...
6) AND, you may be able to get a refund...even a big refund...and (legally and within the rules) keep it.

NOTE: You will probably not be able to figure this out based on what you read on the Internet. It amazes me the stuff about bankruptcy that clients have told me they have read on the Interet. I am absolutely positive that you can diagnose any disease; learn how to fix any problem with your car; and get accurate information on any person on earth on the Internet BUT FOR SOME REASON, THE LEGAL STUFF IS A BUNCH OF CRAP.

So, I'm sorry,but you'll have to see a lawyer. Even a paralegal won't do. It won't be that bad...but I'd be lying if I said it would be fun.

So, one thing Thanksgiving means to me?? Bankruptcy planning.

I will now rejoin Patriots vs. Lions in the middle of the 1st Quarter and I willl leave you for now with these important holidays word, especially important THIS ("rebuilding")year: GO GATORS!

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