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The answer depends on what kind of bankruptcy you are filing. If you are filing under Chapter 7 (called “liquidation ” or “fresh start”), then any refund for 2009 and earlier (assuming you are filing in 2010), has to be turned over to the trustee (a court officer responsible for overseeing bankruptcy cases and distributing money and property to the creditors). The way to avoid this result is by waiting until after you receive your refund before filing for bankruptcy. You can then spend the refund on necessary expenses or convert it into exempt property. However, you have to be careful about how you spend the tax refund – if a court determines that you improperly tried to hide your assets, there may be serious consequences, including possibly a denial of discharge. If you are going to choose this approach, it is best to consult with an experienced bankruptcy attorney in your area. Continue reading ‘Do I Have to Give Up My Tax Refund When Filing For Bankruptcy?’ »