Do I get to keep my tax refund check?
June 29, 2022
By Diane Drain Attorney & Retired Law Professor
Any right to a tax return that you had when you filed bankruptcy is an asset of your bankruptcy estate that belongs to your creditors. Depending on the terms of your plan, you may be required to hand over your tax refund check to the Trustee at the time you receive it. In a chapter 13, you will very certainly be asked to give up 3 to 5 years of refunds. Consider why you’re receiving a refund check. You lose the ability to use those funds for your own purposes if you overpay your taxes. Calculating your wage deductions depending on your current position is the best solution. You won’t be able to use your return check as a “savings account”.
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
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