Legal Question in Bankruptcy in New Jersey

Is there a reason why you are not adjusitng your W-4 NOW to eliminate the refund coming next year?

How much is the expected refund?

Yes, you can use your exemptions. Typically, you would use your "wildcard" exemption plus up to a specified amount of unused homestead exemption. The dollar amounts that you are entitled to are set forth in the bankruptcy code. Do you have an attorney? If you are filing without an attorney, and you don't know how to exempt the tax refund, it makes me wonder whether you should be undertaking this yourself. Perhaps you might benefit from general advice if you are proceeding without an attorney. You did not say now much of a tax refund you are expecting. If it is below a certain amount then you can easily exempt the refund, but again you must prepare your bankruptcy petition properly. If your expected tax refund is going to be above a certain amount, then you should consider adjusting your W-4 to withhold less tax between now and the end of the year, as suggested by the previous attorney who responded.

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