I have my income tax I havent cashed it yet should I wait till I actually sign my bankruptsy papers ?or spend it before I sign bankruptsy papers? Does it matter? I dont want them to say I have to hand over my check
2 Answers from Attorneys
You have to disclose the refund is some way no matter what. I doesn't if you haven't cashed the check yet. You need to speak with your attorney to see if the refund can be claimed as exempted or to see if there is a strategy to use the refund before you file for bankruptcy. If you don't have any attorney, get one.
You might have a need medical procedure that you've been putting off due to lack of money. Maybe your care needs new tires and brakes. Maybe you can put the money in an IRA and protect it that way. Maybe you enough exemption money to just deposit the refunds and claim it as yours. These all all things you need to discuss with an attorney.
When you file your bankruptcy, the law says you must give the trustee your most recently filed return. The trustee will see that you got a refund and ask you about it. Trying to hide the refund will get you in trouble.
Our office regularly finds exemptions for refunds of this size. Burning it up in anticipation of filing bankruptcy is a landmine for you.
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