Legal Question in Bankruptcy in Florida

Bankruptcy & Expected Tax Refund

I am considering filing bankruptcy and would like to know if I can lose my income tax refund. I usually file "rapid refund" and receive a return based on "earned income credit". A friend told me that as long as I file at least 4 months prior to tax refund time, I cannot lose my refund. What is accurate?


Asked on 8/10/00, 9:31 pm

1 Answer from Attorneys
Michael Duggar Buchalter & Duggar

Re: Bankruptcy & Expected Tax Refund

Tax refunds (including earned income credit) are recoverable by the Trustee on behalf of the court if the refund is above the $1000 personal property exemption. Many clients use Rapid Refund and spend the refund PRIOR to filing. Trustees start questioning Debtors in the middle district of Florida about tax refunds starting in November so be careful!!

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Answered on 8/14/00, 5:23 pm


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