Filing taxes before chap 7.

[tyspruiel]

Just curious if my spouse and I should file our taxes before our bk is final or should we wait till after. We are expecting around 2000.00 refund and do not want to have to repay creditors back. We are living paycheck to paycheck and that money will be put into savings for an emergency funds/backup funds or to just rebuild for future home down payment. Thanks to all who answer.

[rberhow]

Have you filed yet? All I can tell you is from my own experience, not sure how this applies from state to state. Anyways, when we filed last year, our lawyer made sure that we had already filed our taxes because if we filed after our bk was filed, he said the trustee was more apt to award that money to our creditors. I can't remember for sure, but I think I do remember the trustee even asking something about that. If memory serves me correctly, one person had yet to file but they were allowed to keep it 'cause they were going to use it to catch up on loans they were reaffirming. Hope this helps atleast a little. Like you, I enjoy the fact that we will be able to put our refund away in savings this year instead of applying it to bills as we have always had to do. Wow, this will be our first measurable savings account, can't wait for that!!!!! Anyways, I would check with your lawyer. I have found through my own personal experience, it is much better to just ask than to sit and worry. Hope all goes super smooth for you.

[HHM]

File your Taxes before the BK, and if you are entitled to a refund, wait to file BK until after you get the refund and can spend it. ;)