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

Yes, you can keep your taxes refund after filing for Chapter 7 Bankruptcy in Florida. This is because a Chapter 7 Bankruptcy filing does not automatically take away your right to receive a tax refund. When you file for Chapter 7 Bankruptcy in Florida, your creditors are prevented from continuing collection efforts, meaning that they cannot take your tax refund as payment for a debt. Therefore, when you file for Chapter 7 Bankruptcy in Florida, you can keep your tax refund and use it to cover necessary expenses. However, depending on the situation, it is possible that your bankruptcy trustee may want you to turn over your tax refund to them. This could occur if the amount of your refund is enough to cover the debts that you owe to your creditors. In this case, you must turn over the entirety of your tax refund to the bankruptcy trustee and they will divide the funds amongst your creditors. It is important to note that if you are expecting a tax refund in the same year that you plan to file for bankruptcy, it is a good idea to speak with your bankruptcy attorney to understand your rights and options. Additionally, if you file for Chapter 7 Bankruptcy in Florida, you must complete and submit a signed statement of your financial affairs, which will need to include your yearly tax returns and any refunds or credits you are expecting.

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