Bankruptcy and Tax Returns

[MattP2144]

Hi all: 

 I am kind of new to posting here. I was wondering about our tax returns, i am in the middle of gathering my documents to file bankruptcy. I have met with my lawyer, did the counceling class, and paid him some money so i can start the process. I am wondering if i my lawyers is filing the case on the 20th of Feb, but get my tax returns back next Friday  the 13th will i be safe from them taking any of that money. My lawyer tells me not to worry about it i will be fine. I am not sure if its because i have some sort of exemption he is going to use. I am keeping  our two cars, and our home. Probably re affirming all of that, even though people say not to, but we have no intention of leaving our home for the next ten years, since we just bought it last year. We make good money but have made bad decisions. My dad died and i had to pay a lot of the Funeral expenses, and had to have my sister and nephew move in with me. Without them living with us we would not even be able to file. any help would be greatly appreciated. I am so nervous of what to do and not to do. We are expecting our first baby this year too and want to use some of our tax money to prepare our baby room and get prepared... thanks! 

[CH-7-Mission-Accomplished]

Hi,

I went through this 18 months ago so I know how stressful it is.

How much money is your tax refund?  I am going to take a wild guess and assume that it is under $2000 or $3000?

As long as your attorney knows the amount of the refund and has properly disclosed it in calculating your assets, I'm sure you will be fine.  It is no different than if this tax refund were money in a bank account.  The attorney would disclose it and so long as you have available exemption, you are fine.

You are likely worrying about nothing here.  If your attorney knows about the money and says you are fine, you should relax.  You have a lot of stress going on right now and there is no point in creating more of it where there is no real issue.

Good luck!

[MattP2144]

Federal is 3800 and state is around 500 .... the money would come in handy in having a fresh start and being able to prepare forour new addition, and saving money and not using credit cards anymore... 

[StartingOver10]

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@MattP2144 wrote:

Federal is 3800 and state is around 500 .... the money would come in handy in having a fresh start and being able to prepare forour new addition, and saving money and not using credit cards anymore... 

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Normally your Bk attorney would want to know these figures so he can put them in your cash exemptions in your petition. It's as easy as that.