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What Happens to Your Tax Refund in Bankruptcy


When filing for bankruptcy, one of the most important concerns is what will happen to your tax refund. Navigating the world of bankruptcy and taxes can be a tricky process, and it’s important to have a clear understanding of how filing for bankruptcy might affect your tax return.


Depending on the type of bankruptcy you file, your tax refunds may or may not be exempt from claims against you. In Chapter 7 Bankruptcy, any income you are entitled to receive after filing is considered property of the estate and creditors may assert a claim against it. This includes income from wages, inheritance or even an IRS refund check. On the other hand, if you file for Chapter 13 Bankruptcy which focuses on reorganizing debt rather than liquidation, then all refunds that are obtained while in repayment plan are protected from creditors by law.






The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.



Our goal is it to help you find a fresh start FAST!


Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706






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