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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Is there a best time or a bad time to file for bankruptcy?

Resolved Question:

Is there a best time or a bad time to file for bankruptcy? And do you have an idea of how long it usually takes? Also I will be getting my refund from income taxes soon and I want to know if the bankruptcy would effect it? at all?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.
Hi JACustomer,
1) What state are you in?
2) How will your refund(s) be?
Customer: replied 4 years ago.

Illinois

What do you mean how will my refund be? The amount? probably about 2,000

Expert:  cfortunato replied 4 years ago.

Yes - I meant to ask how much you were getting for your income tax refund.

If you file a Bankruptcy before you receive and spend (on everyday expenses) your income tax refund, that refund can be taken by the Bankruptcy court, depending on the value of other assets you might own.

In Illinois, a Bankrutpcy filer is allowed to keep a total of $4,000 in personal property - including cash, bank accounts, and anticipated tax refunds.

If your other personal assets equal less than $2,000, you would be able to keep your tax refund. If your other personal assets are worth more than $2,000, and if you file before you receive your refund, you may have to surrender part of the refund to the Bankruptcy trustee.

 

I think this is what you wanted to know. If not, please let me know.
Thank you.

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