Can tax refund be exempted

[arami008]

I have no stuff with real great value and I was wondering if I file for Chapter 7 no asset, will i be able to keep the refund? It's about 4-5k. Thanks

[Mi Bankruptcy]

Here's what we did. however, we have to wait until our 341 in Jan to see if it works. We are CH7 no asset with plenty of room left in our exemptions.I hear it really depends on the trustee. Anyway heres what it looks like.

Schedule B
Anticipated 2008 Tax return $6,000

On Schedule C we listed:

We put "Anticipated 2008 Tax Return"
(Husb)11 U.S.C. 522(d)(5) $3,000
(Wife)11 U.S.C 522(d)(5) $3,000

[philslyn]

my lawyer suggested to file the taxes january the end and we will use the money as a reason to pay the lawyer. she said we can keep the refund if we file taxes before bk

[Help!]

Tax refunds, unless exempted, are assets that can be taken regardless of when you file your return. The trustee may decide not to take them, but I definitely wouldn't plan on it.

[Mi Bankruptcy]

Tax refunds, unless exempted, are assets that can be taken regardless of when you file your return. The trustee may decide not to take them, but I definitely wouldn't plan on it.

It's weird how they view that as an asset. They take into account how much you are paid and the amount in your bank account when you file.

[Help!]

I agree. Technically an asset includes not only what you have, but anything that is owed to you (even if you're not aware it's owed to you!). In the big picture, though, the ability to get out from under a mound of debt makes the loss of a few thousand dollars pretty insignificant.