Tax season is upon us. Most of us are looking forward to a nice-sized income tax refund check, but what happens to your refund check if you are planning to file a Walworth County bankruptcy? Will the trustee confiscate your tax return? Let’s take a look at how you can file a Walworth County bankruptcy and keep your income tax refund.
Your Income Tax Refund and The Bankruptcy Estate
Your bankruptcy estate consists of all the assets you own on the day you file your Walworth County bankruptcy case. This includes your income tax refund amount, whether you have already received the check or whether you are still expecting the check. You may be able to exempt your income tax refund check, but that will depend on the allowable amount you can exempt by law and what other assets you own that you need to exempt. It is important to discuss this issue with your Walworth County bankruptcy attorney.
Ways to Keep Your Income Tax Refund Check When Filing a Walworth County Bankruptcy
The absolute best way to avoid seizure of your income tax refund money is to talk to your Walworth County bankruptcy attorney. Often, people are able to spend the money prior to filing and avoid seizure. File your taxes, receive your check, spend the money, and then file your Walworth County bankruptcy. However, you must not spend the money frivolously. Never spend the money on luxury items or loan repayments to your family and friends, as doing so can cause the trustee to order the repayment of the money. You should also keep a record of exactly how the money was spent. The bankruptcy trustee has the right to ask you.
One action you can take is to use your income tax refund monies to pay your bankruptcy attorney fees. You know you need to file a Walworth County bankruptcy. You know you need to pay your Walworth County bankruptcy attorney prior to filing your bankruptcy case. Using your income tax refund to pay for bankruptcy attorney fees is a wise choice. You can pay your Walworth County bankruptcy attorney up front in one lump sum and let the bankruptcy trustee know that you needed to use the money in order to pay for bankruptcy costs. It’s a win-win! This is especially true if you are having a hard time raising the money for the cost of filing bankruptcy.
There are some other ways you can spend your tax refund amount without getting into trouble with the bankruptcy trustee. This list includes only necessities of living, such as: mortgage payments or rent, food, car repairs, and a few others. Ask your Walworth County bankruptcy attorney what expenses qualify. Medical expenses and utilities can be paid, but once you file your Walworth County bankruptcy, you may not be responsible for those items, if discharged. You must choose wisely and under the advisement of your Walworth County bankruptcy attorney.
Contact Our Walworth County Bankruptcy Office
Are you ready to file bankruptcy once you receive your tax refund? Contact Wynn at Law, LLC for a free consultation and learn how we can help you. You can reach our Walworth County Bankruptcy Office at 262-725-0175 or send us a message through our bankruptcy website’s contact page. Wynn at Law, LLC has offices in Delavan, Salem and Lake Geneva, Wisconsin.
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*The content and material on this web page is for informational purposes only and does not constitute legal advice.
