| The answer depends on what kind of bankruptcy you | | | | experienced bankruptcy attorney in your area. |
| are filing. If you are filing under Chapter 7 (called | | | | If you are filing under Chapter 13 (called "debt |
| "liquidation " or "fresh start"), then any refund for 2009 | | | | adjustment" or "reorganization"), you will not have to |
| and earlier (assuming you are filing in 2010), has to be | | | | give your refund for pre-bankruptcy tax years to the |
| turned over to the trustee (a court officer responsible | | | | trustee. However, you will have to pay your creditors |
| for overseeing bankruptcy cases and distributing | | | | the value of the refund over the length of the Chapter |
| money and property to the creditors). The way to | | | | 13 plan, unless, again, you receive the refund prior to |
| avoid this result is by waiting until after you receive | | | | filing bankruptcy and either spend it on necessary |
| your refund before filing for bankruptcy. You can then | | | | expenses or convert it into exempt property. To learn |
| spend the refund on necessary expenses or convert it | | | | more about the bankruptcy process and the |
| into exempt property. However, you have to be | | | | differences between Chapter 7 and Chapter 13 |
| careful about how you spend the tax refund - if a | | | | bankruptcy, take a look at the link below. |
| court determines that you improperly tried to hide your | | | | The above is provided for informational purposes only. |
| assets, there may be serious consequences, including | | | | It is not intended as legal advice, and does not create |
| possibly a denial of discharge. If you are going to | | | | an attorney-client relationship. |
| choose this approach, it is best to consult with an | | | | |