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

If you live in West Virginia and have filed for Chapter 7 Bankruptcy, you may be able to keep your taxes refund. Under the West Virginia Code, certain types of income are protected from the claims of creditors and can be kept by the debtor. If the refund is from a tax return based on income that was earned before the bankruptcy was filed, then it is usually protected. When you file your bankruptcy petition, it starts the automatic stay. The automatic stay prevents creditors from trying to collect on money you owe them. It also prevents the IRS from seizing your tax refund. This means that you can keep your taxes refund, as long as it was based on income earned before the bankruptcy was filed. Also, if you received the tax refund after filing for bankruptcy, you should still be able to keep it. This is because any money paid to you after filing for bankruptcy is considered to be yours. The only time you would not be able to keep the tax refund is if the money is part of a joint filing and the debt that you owe also belongs to the other party. In this case, the refund would likely be seized. However, it is always best to talk to a qualified bankruptcy attorney about your specific situation to get clear direction.

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

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