Mistake #4: Forgetting Your Tax Refund

Another common mistake, particularly this time of year, is for someone to file a bankruptcy without accounting for any tax refund they are due. The bankruptcy court views refunds as part of a filer’s assets. There are two ways to protect any refund you are due.

First, you can use any available exemptions to protect your refund.

Second, you can adjust what is withheld from your paycheck in order to limit the amount of the refund you are due.

Tax refunds are forgotten many times. With proper planning, a refund can be protected. Consult an experienced bankruptcy professional to get your questions answered. If you are in Western North Carolina, I would be happy to help.