Legal Question in Bankruptcy in Florida

It depends on your plan; sometimes yes, sometimes no.

If you don't give it up and you needed to, then the Trustee could do a Motion to Dismiss your bankruptcy, and you would not be in bankruptcy anymore and not protected from your creditors.

Unless your plan, as approved by the court, provides for the payment of 100% of the claims of your secured and unsecured creditors, then your tax refund becomes property that should go to the Trustee and then be distributed to those creditors. In Jacksonville, you can write a letter to the Trustee asserting "hardship" factors that show you should be able to retain it. This works quite often.

If that does not work and you refuse to turn over the refund, the Trustee will move to (a) dismiss your case or (b) convert your case to Chapter 7. Dismissal is more likely, but if the case is converted, then you will lose the tax refund anyway to a Chapter 7 trustee.

If you think you need the tax refund for ordinary living expenses, write a letter to the Trustee.

Good luck.

Robert Wilcox

(904) 281-0700