Can I keep my tax refunds if I file a Chapter 7 bankruptcy?

You may be able to keep your tax refunds after filing a Chapter 7 bankruptcy in Virginia. Whether you will be able to keep the refunds will depend on when you file your case and how much your refunds are. A tax refund is an asset that must be protected or exempted in order to be able to keep it. What many individuals, who try to file bankruptcy without the assistance of an experienced bankruptcy attorney, don't realize is that tax refunds must be protected at any point in the year. How much must be protected will depend on when the case is filed. The question will not be whether you have filed your tax returns before filing the bankruptcy but whether you have received your refund. Even after you receive your refund for the previous year, you must be concerned about the refund for the next year.

Don't lose your tax refund by trying to save money by filing a bankruptcy without an experienced bankruptcy attorney. Contact Hampton Roads Legal Services at 757-320-2010 to schedule a free consultation on filing for bankruptcy.

Edrie Pfeiffer
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Edrie Pfeiffer, Bankruptcy & Divorce Attorney