Will I Get a Tax Return if I File Bankruptcy?
After filing for bankruptcy, you may be unsure what will happen to money you currently have or expect to get in the near future. One asset many worry about is their tax return and if it will be seized to help pay down a debt. When a request for bankruptcy is submitted by a bankruptcy law firm in Henrico VA, your expenses and income are stated in the application. Remaining funds could be considered disposable income and can possibly be garnished. To avoid this, it is best to work with Henrico bankruptcy attorneys to make such a request. The attorneys at Canfield Wells LLP can help you prepare your request to submit to the bankruptcy court.
Protecting Your Tax Return After Filing for Bankruptcy
Once you file for bankruptcy and wish to protect your tax return from being seized, an exemption needs to be claimed to do so. Henrico bankruptcy attorneys can draft the necessary paperwork, forms, and gather evidence to submit to show why it shouldn’t be applied to your debt. It is important to note that this should be done before the return is deposited into your account. Once your return is in your bank account, it can be viewed as disposable income.
If that option isn’t viable, an attorney at a bankruptcy law firm in Henrico VA can show you other ways to save your funds. One way is to deposit the money in a retirement account so that it isn’t sitting in your savings account.
Each category of bankruptcy has its own set of exemptions that can be claimed. The best way to handle this request is with an attorney because they know what’s required to apply for each exemption and the best evidence to show that will lead to a better outcome.
Contact the law office of Canfield Wells LLP to learn how they can help you.