Bankruptcy and Tax Refunds
After going through a bankruptcy, one of the more complex issues that many individuals and families have to deal with is how it affects their taxes. Bankruptcy can impact taxes in a number of different ways, with one of the most important being how it may limit or restrict any tax refunds that debtors may be entitled to receive.
The impact that bankruptcy may have on your tax refund can vary, but generally speaking, there are a few key issues that all people who have filed for bankruptcy should be aware of in regards to tax refunds. These include:
- Filing a Chapter 7 bankruptcy may lead to your tax refund being taken away
- In some situations, it may be possible to exempt your tax refund
- The liquidation of a debtor’s assets in Chapter 7 bankruptcy may dramatically impact the size of your tax refund
- Being the focus of an audit by the IRS can disrupt the bankruptcy process
These are just some of the different ways that bankruptcy can affect the amount of tax refund that an individual may be entitled to receive.
Talk with a Bankruptcy Lawyer in Cincinnati
If you are considering pursuing bankruptcy in Cincinnati but want to learn more about how it may impact your taxes, Ryan J. Ruehle Attorney at Law, LLC may be able to help. Call (513) 621-0999 today to speak with a trained member of our professional legal staff and let us help you examine the exact nature of your financial situation to fully understand your options. We can not only help you understand bankruptcy better, but also guide you through any necessary steps in the process to getting your finances back on track.