When you file a Chapter 7 bankruptcy, the court appoints an individual, called the trustee, whose job is to review what you own or are entitled to receive in order to see if there is a way that the trustee can get money to help pay your unsecured creditors. One of the things that they look at is your tax refund. Most people do not understand that the tax refund you receive can be taken to help pay your creditors. Depending on when you file a Chapter 7 bankruptcy, you must protect some or all of your tax refunds. The calculation of how much you have to protect and the method of protecting your refunds is not a simple process in Virginia. You need an experienced bankruptcy attorney to guide you through this process so you don't lose money you need to take care of yourself and your family.
Contact Hampton Roads Legal Services at 757-320-2010 to schedule a free consultation with Edrie Pfeiffer today.