A debtor filing a Chapter 7 bankruptcy may keep their tax refunds in certain situations. Whether they can keep their tax refunds and how much they can keep, largely depends on whether their case was filed using state or federal exemption law to protect all of their property. A debtor typically chooses federal exemptions when they have little to no equity in their homestead property. Under federal exemption law, debtors get up to $15,425 to protect miscellaneous property that is not specifically protected under another exemption law.
If I’m Filing a Chapter 7 Bankruptcy, Can I Keep My Tax Refund in St. Paul, MN?
A debtor filing a Chapter 7 bankruptcy may keep their tax refunds in certain situations. Whether...