Archive for March, 2014

Tax Season: How to Keep Your Pending Income Tax Refund While Starting a Chapter 13 Bankruptcy in Utah

You can usually spend your anticipated tax refund on something important, but may first have to get permission from the bankruptcy judge.   Received and Spent Tax Refunds This blog post is about tax refunds that you are legally entitled to but have NOT yet received as of the time that your Chapter 13 case is filed. Under some circumstances the issues discussed in this blog post can be avoided if you wait to file your case until after you have already received and spent the refund. But this should only be done after getting advice of from a bankruptcy attorney.…

Tax Season: How to Keep Your Income Tax Refunds in a Chapter 7 Bankruptcy in Utah

You could lose your income tax refund if you file a “straight bankruptcy” Chapter 7 case, but can probably keep it if you get the right advice.   The Right Starting Point Any issue involving the combination of taxes and bankruptcy can get very complicated very fast. So if you are thinking at all about bankruptcy, it simply makes sense to see a competent bankruptcy attorney about anything involving tax obligations or tax refunds, and to do so early. Many potential mistakes can be avoided with timely advice. Tax Refunds as Chapter 7 Assets Why are tax refunds something to be…