Tax season is here and many families in the Kansas City area are eagerly awaiting their state and federal tax refunds. Many people use their tax refunds for the latest technology gadget or to pay some of their bills. If you are facing mounting bills and debt that seems impossible to overcome, our experienced Kansas City bankruptcy attorneys may be able to help you! At the Sader Law Firm, we help individuals and families in Kansas and Missouri file for bankruptcy. What does this have to do with your tax refund? A tax refund may offer you a way out of your existing debts. Often times, a person is unable to pay off all of their debt with a single tax refund. However, tax refunds may be used to pay the attorney and filing fees for a bankruptcy. If you qualify for a chapter 7 bankruptcy, you may be able…
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One question clients often ask is whether filing a bankruptcy will cause them to lose their future income tax refund. When a person files bankruptcy, anything they own or are entitled to on the date they file bankruptcy is considered an asset of their bankruptcy estate. The tax refund amount the bankruptcy estate is entitled to is calculated on a pro-rata basis (according to the number of days in a year) and based on the date the case is filed. There are exemptions that can be used to protect some (or hopefully all) of these assets, including income tax refunds. Tax Refunds for Chapter 7 Cases In Kansas, under K.S.A. 60-2315, any portion of a debtor’s tax refund that is attributable to the earned income tax credit is exempt.B This exemption is only able to be applied towards one year’s tax refund. The remaining tax refund cannot be exempted and…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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