Can you keep your tax refund?
If you are considering filing for Bankruptcy, we will need to make sure that all of your assets will be protected. If you file for Chapter 7 Bankruptcy in Illinois, the Illinois statutory "exemptions" are used to determine the allowances available to protect your assets. The Illinois "Wild Card" exemption operates to protect up to $4,000.00 of tangible assets (for each debtor), such as household goods, cash, money in the bank, and tax refunds.
The tax refund is considered to be an asset, even if you have not yet received it. In many cases, all or a part of the refund can be "exempted." If you expect to receive a refund in the amount of $3,000.00, for example, you can apply part of the $4,000.00 wild card exemption to protect the entire amount of the refund. You may also be able to exempt certain child tax credits, depending on the particular circumstances.
If you have questions about the applicability of the available exemptions, please contact our office. We will be happy to advise you of the exemptions that are available to protect your assets.