Bankruptcy And The Tax Refund?

can the bankruptcy court take my tax refund?

The answer is yes..I think, but it depends on the state that you're in and also the time of the year? It is possible for the bankruptcy trustee to take a fraction or sometimes your full tax refund depending on the circumstances.

I think msissbedingfield was referring to a situation in which you file bankruptcy on the fourth quarter of the year, which would make it 3/4 of the previous year, so the trustee can only take 3/4 of your tax refund.

Unlike if for example if you file on the first quarter, say January, that would enable the trustee to take all or the full amount of your tax return. So in this case the time that bankruptcy was filed mattered to the the time that you received your tax return.

The trick to keeping some of the tax return money is receive it first and then file bankruptcy, that way the trustee may only get part of your refund.

what happens if i've already spent my tax return? can they still get that from me, too?

That would depend on how you spent the money. If you spent it on a shopping spree or for house improvement, the trustee would ask it back, but if you've used it to pay off other debts, say from a relative, the trustee would most likely let it go.

okay that's good thanks. i'm just wondering though like how exactly they can ask it back. cos right now i can't pay it all off in one lump sum. would there be like a payment plan of some sort? i certainly hope so