missouri bankruptcy rules
How Does Filing Missouri Or Illinois Bankruptcy Affect My Tax Refund?
The answer to this question is a simple yes or no. Of course, an experienced St Louis Missouri bankruptcy attorney could tell you the answer for your specific situation but, in the mean time, here are a few general rules regarding the fate of your tax refund in Missouri or Illinois bankruptcy.
Your refund might be used by Uncle Sam to pay and tax debt you have before you even get a chance to see it. They may even be able to take it even if you aren’t filing bankruptcy. In a Chapter 13 in Missouri, however, there is a local rule that allows debtors to keep a portion, if not all, of your tax refund. And in Illinois, for right now, you don’t have to give up your refund at all.
Putting off getting protection from foreclosure, credit card debt help, and relief from your creditors just to save your tax refund may not be the best idea either. If you owe money for child support, student loans, or other government loans, the government can still take your refund to apply to these debts.
Even if you don’t owe the government, your money can indirectly be taken by your creditors. What if your bank accounts are being levied? Creditors can get after that extra cash you have in the bank. Even if you don’t hire a St Louis bankruptcy attorney to take care of your debt, you may not want to have your tax refund direct deposited. If your creditors are after your checking accounts, it may be best to just get your refund the old fashioned way—through a check in the mail that you can cash yourself.
Perhaps you should also think of your tax refund in a different light. Wouldn’t you want to use your tax refund to pay down on your debt anyway? All the rules associated with Chapter 7 and Chapter 13 bankruptcy are designed to get you out of debt, not to keep you in it. It would be great to use that tax refund on a long-awaited shopping excursion but it may be best, if you are in crushing amounts of debt, to use your refund for your debts.
Keep in mind, bankruptcy holds the power to change your life–and the life of your family. With the help of a bankruptcy attorney, you can finally build the life you want to have for you and your family. Educating yourself with free material is one of the best ways to tell if bankruptcy is right for you or not.
About the Author
Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” You can request a free copy at
http://www.castlelaw.net
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