A lot of people would like to know if they are still eligible to receive a tax refund if they have already filed for bankruptcy. The good news is, you are! If you have filed your taxes properly and are owed a refund, you can still expect that refund. However, there are a few exceptions.
Internal Revenue Service and Bankruptcy
For example, if you owe the Internal Revenue Service, only then will the IRS keep your tax refund. Your return will be used to help pay down your debt. It is important to remember tax debts are not usually discharged during bankruptcy proceedings.
You will still be able to file bankruptcy and eradicate all your other debts, making it easier to pay the remaining balance on your back taxes. Expecting a full return while owing the government any amount of money and expecting a return is improbable. If you are expecting a return after filing bankruptcy, the IRS warns it may take longer than normal to receive your refund.
While going through bankruptcy proceedings, whether you will receive a tax return varies from case to case. It is vital to know where you stand throughout the entire process. Familiarize yourself with your legal rights and understand how bankruptcy affects the rest of your financial future.
Experienced Attorneys, Here to Help!
The attorneys of Parker and DuFresne completely understand the challenges ahead of you and are prepared to help find the best solution for your situation. For most individuals, having to file is a daunting scenario but, with adequate legal counsel and support, it doesn’t have to be.
Having the proper tools and being well-informed alleviates a lot of fear and stress this situation may cause. Bankruptcy is no longer the dreaded final resort. It is the next step to financial stability. Let us help you turn an unsettling situation around for you and your family. Call the attorneys of Parker and DuFresne today.