Well its that time of year when we have to pay Uncle Sam our hard-earned money. For some of us, that means getting a well-deserved tax refund. You’ve been looking forward to the money all year! You already have the money ear-marked to make some needed repairs on your car, maybe even catch up on your property taxes. But if you are considering filing bankruptcy, its important to recognize that the tax refund may belong to your creditors! Yep, that’s right … in certain situations your tax refund can be taken from you in a bankruptcy proceeding to pay your creditors. But don’t loose hope. Relax. With an experienced and dedicated attorney by your side, all hope is not lost.
That’s where I come in. I’ve been helping clients in bankruptcy court for nearly 30 years. I have a broad range of experience in Chapter 7, Chapter 11 and Chapter 13 bankruptcies. You can call or text me anytime at 561-255-9350 for your free consult.
In the meantime, here’s what you need to know:
In Florida we have exemption laws that allow you to keep certain assets even if you are filing bankruptcy. For example, there is the famous Florida homestead exemption which basically allows you to keep your residence so long as you are up-to-date on your mortgage, taxes and association fees. Florida also has a personal exemption which basically allows you to keep your personal assets so long as the total value does not exceed $1,000.00. While there are a whole wide range of items that constitute personal assets, simply put, your home furnishings typically make up the lion-share of its total value (though not always by any stretch).
So, for example, lets say you have $800.00 in personal furnishings and $100.00 in your bank accounts when you file bankruptcy with no other personal assets. As you have under $1,000.00 in personal assets, you would be able to keep them all despite filing bankruptcy. But, lets say you have a tax refund of $1,500.00 pending at the time you file bankruptcy. Well, that’s a contingent asset that you are entitled to at the time of filing. The court has every right to take $1,400.00 from your tax refund (remember you only used $900.00 of your $1,000.00 exemption) leaving you with a paltry $100.00 from your tax refund! Not good!
Of course, the law is way more complicated than my examples given above. But I wanted to make a point. Bankruptcy is a very complex area of law that requires extensive knowledge of many areas of practice. You ought it to yourself to hire an attorney who is experienced and well-versed in bankruptcy law. I’ve been representing Florida clients in Chapter 7, 11 and 13 bankruptcies for nearly 30 years. Every initial consultation is free and I will not take in a case if I don’t believe I can win. You can check out my website at www.kranzlawfirm.com for more information on bankruptcy. Or if you want to check out my ratings and some client reviews from an independent website, you can go to www.avvo.com for more information about my practice. Hey, an even better idea is to just call or text me at 561-255-9350. One difference between my law firm and the rest is that when you call me, you get me. Don’t believe me … ? Give me a call now!