Can I keep my taxes refund after filing for Chapter 7 Bankruptcy?

Filing for Chapter 7 bankruptcy in California means that your assets will be liquidated to pay off your creditors. Unfortunately, this includes any taxes that you are expecting in a refund. When you file for bankruptcy, all of your assets become part of the bankruptcy estate, and taxes you anticipate receiving will be used to pay off creditors. However, some states allow debtors to keep their taxes refund after filing for Chapter 7 Bankruptcy. California is not one of them. In California, the bankruptcy trustee is responsible for using the refunded money to pay your creditors. If the money is not enough to pay off your debts in full, you may be able to negotiate a settlement with your creditors to pay off the rest of your debts with a certain amount of money. In addition, you may be able to use some of the refunded money to cover the cost of filing for Chapter 7 Bankruptcy. If you can prove that the taxes are necessary for you to cover your filing fees, and if the amount left after the filing fees is not enough to pay off your creditors, then the trustee may allow you to keep the remaining balance. Overall, there is a chance that you may be able to keep some of your taxes refund after filing for Chapter 7 Bankruptcy in California. However, it is important to talk to a bankruptcy attorney to determine the best course of action for you. They will be able to evaluate your situation and advise you on what options are available to you.

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Can I keep my taxes refund after filing for Chapter 7 Bankruptcy?

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