Not when it’s the government returning YOUR money as a tax refund. You’ve struggled without the money for a year while Uncle Sam used it without interest.
But it’s even worse when you’ve filed bankruptcy during the tax year, and come April, the bankruptcy trustee demands the turnover of a portion of the refund as having accrued before you filed bankruptcy.
Ouch! You lose twice.
Cut your creditors out of your tax refund
Part of your pre bankruptcy planning should include a look at your current year withholding.
If you usually get a substantial refund, or if something in your tax life suggests you’ll get a big refund for the year you file bankruptcy, do something! [Read more…]