Category: Law Services

Is It the Right Time to File Bankruptcy After or Before the Tax Return? Filing for bankruptcy might be confusing, and so is filing for taxes. Combing the two might become complex. But in general, it is always better and more convincing to complete the tax return before you file for bankruptcy. Here’s what you should learn: Bankruptcy after the Tax Return - If you file bankruptcy before the receipt of the refund & the refund isn’t exempt, it might be held until a refund is abandoned or administered by the trustee upon the refund’s receipt. So, when you think you will get the non-exempt refund, you might wish to file your tax return first. But when it’s about the exemption planning & pre-bankruptcy transactions, always discuss the needful with a bankruptcy attorney Brooklyn NY.