Because it is that time of year, we get a lot of questions from our bankruptcy clients regarding their tax refund. Generally, a tax refund will be included in a bankruptcy case, however, it is rarely seized by the trustee. Unless you are expecting a large refund in excess of $10,000 or you have very little left of your "wildcard" exemption, our clients will almost always have their refund protected. However, the bankruptcy statute does allow the trustee to utilize that money to pay back creditors if it is not protected by the debtor.
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