Tax Refunds, Bankruptcy, End O' The Year Issues 
Thursday, December 19, 2013, 08:50 PM
Posted by Administrator
Planning on having the IRS send you a refund? Deep enough into debt to be considering filing for Bankruptcy? Is is the end of the year, already?

Much as I believe that you should do yourself whatever it is you are able to do yourself (personally, I had my septic tank open, yesterday, and was cleaning out a clog), for some things, you probably should consult with a licensed professional. What goes on with a tax refund for bankruptcy filers is one of those things....especially as the end of the year approaches and the new year begins.

In Bankruptcy, Court Appointed Trustees are eager to snatch your refund and use the money to pay something back to your creditors. It is a noble idea and I've had clients who have happily handed over their refund check. On the other hand, by a ratio of about 100:1, the vast majority of my clients have not wanted to turn over their refund check....and they haven't. It does take some thought and planning to legitimately (without lying, cheating, or stealing) keep your refund. Here are some helpful hints...things to do on the way to see that lawyer:

-Don't give the refund money to family members or friends to "hold" for you;
-Also, don't pay back your family members or friends with the money;
-Don't use the money to buy a big TV or jewelry or a really cool assault weapon....or spend it on getting your car fixed up real nice;
-Feel free to spend the refund money on fixing a leaking roof or needed dental work or even a nice meal out......but don't get carried away.

Oh, by the way, the tax refund money really should go into a separate, new bank account without payroll money in it......and you should probably spend the tax refund money and keep your paycheck (in the separate account).............

but, really, it's a complicated subject so go see a lawyer before you get something wrong......and it costs you.
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