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

The answer to whether or not you can keep your tax refund after filing for Chapter 7 Bankruptcy in Washington depends on several factors. The state of Washington has put in place the means of exempting certain types of property from bankruptcy in order to protect innocent creditors and the debtor from losing their property and savings. The first factor to consider is the type of tax refund you are expecting. If you are expecting a tax refund from Federal or state income taxes, these refunds are generally non-exempt and are subject to be taken away by the Bankruptcy Trustee in order to pay off your creditors. However, if you are expecting a refund from a retirement plan, including Social Security, or a refund from a Homestead exemption, then this money is usually exempt and can be kept. Additionally, if you have already received your refund before filing for Chapter 7 Bankruptcy, then this money may be able to be kept if it falls within the range of exemption amounts listed in Washington’s exemption law. If the refund amount falls within the exemption, then you can keep the money and use it to pay for necessities, such as groceries, rent, or utilities. In conclusion, it is important to consider the different factors of your situation before filing for Chapter 7 Bankruptcy in Washington in order to better understand if you can keep your tax refund or not. If you need more information on how to protect your assets, it is always best to consult an attorney.

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

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