The general answer is “Yes”.
You want to be able to Spend your Tax Refund
Whether you file a Chapter 7 or 13 Bankruptcy, your Sacramento Bankruptcy Attorney needs to know what you are entitled to receive in tax refunds. Tax refunds are asset in bankruptcy court and your bankruptcy attorney needs to know your assets in order to protect it. This is especially the case in a Chapter 7 Bankruptcy where you need to make sure you have enough exemption to protect all your assets if you want to keep them. Otherwise, unexempt assets are subject to the confiscation of the US Bankruptcy Trustee in a Chapter 7 Bankruptcy Case.
In a Chapter 13 Bankruptcy case, any nonexempt asset will increase your plan payment.
The amount of tax refund affects the planning and decision-making of your Bankruptcy Attorney.
If your tax refund or a portion of your tax refund is nonexempt, you might want to consider delaying the filing of your Chapter 7 or 13 Bankruptcy case. You want to spend it instead of giving it up. However, there are other considerations to balance when deciding to delay your bankruptcy case. For example, is your house in danger of foreclosure? Is your car in danger of repossession? Will there be a wage garnishment soon? Is the wage garnishment more than what you will receive from your tax refund?
Filing of your Tax Returns are Required to the Filing of your Bankruptcy Case
Moreover, the filing of tax returns is required for the filing of your bankruptcy case.
Furthermore, if you file a Chapter 13 Bankruptcy case, you want to make sure your bankruptcy attorney put the correct tax debt in your repayment plan. You do not want to underpay or overpay your tax debt.
Call Experienced Sacramento Bankruptcy Attorney Muoi Chea
For more information on tax refund planning, schedule a bankruptcy consultation with an experienced Sacramento Bankruptcy Attorney. Muoi Chea is an experienced Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA. The main Bankruptcy Attorney office is in Sacramento, California. Muoi Chea Bankruptcy Attorney accepts all personal and small business bankruptcy cases in the Northern and Central California: Sacramento, Vacaville, Fairfield, Roseville, Woodland, Davis, Yuba, Rocklin, Elk Grove, Galt, Lodi, Tracy, Stockton, Modesto, and other nearby cities in California. Muoi Chea is an experienced Sacramento Bankruptcy Attorney who provides Chapter 7 and 13 Bankruptcy representation in Sacramento Bankruptcy Court and Modesto Bankruptcy Court.