Do I Have to Declare My Tax Return in Bankruptcy?

Bankruptcy Attorney

Entering into a Cincinnati bankruptcy can be confusing, over whelming and stressful. There are many concerns that arise like what will happen to your assets, and what do you have to declare. If you are expecting a tax return, do you have to divulge this information? What happens to your tax return will depend on which bankruptcy you are filing under. If you are filing under Chapter 7, then there are ways that you may be able to protect your return, but under a Chapter 13 bankruptcy your tax return will be handled differently.

Using the tax return is more of a concern in a Chapter 7 bankruptcy and those filing for this don’t know whether they have to declare that they have received a tax return, or are going to. All of your assets have to be listed in your filing, but many assets are considered exempt. It is really important that you seek out advice from a bankruptcy attorney, as your tax return may be only one issue that needs to be dealt with. This expert will know exactly how your tax return is likely to equate in your bankruptcy and can advise you as to what steps you can take to protect it.

The bankruptcy trustee is the one who determines what is going to happen with the tax refund. It will depend on how much money you are going to be receiving, and what your specific circumstances are. You must be sure that you declare everything as per the requirements of your bankruptcy filing. Otherwise you may not be awarded your bankruptcy or the results may not turn out the way that you were hoping for.

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