Tax refund time is here. We have questions from folks as to whether they can file Chapter 7 bankruptcy before or after filing taxes and still keep their tax refunds.
The answer is that they generally can keep their refunds, depending, of course, on how large the refund is. The general bankruptcy exemptions available under the federal bankruptcy exemptions (which can be used in Kentucky) are usually large enough to protect most tax refunds from being lost to the trustee. You can also use your tax refund to pay the fees and costs for the bankruptcy.
Your circumstances may be unique, so always discuss your options with a bankruptcy attorney before you do anything with your tax refund money.