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  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Tax Refunds And Bankruptcy

Debtors who are looking to file bankruptcy often have questions on whether or not their anticipated tax refunds can be protected or if they will be seized by the trustee. The answer to that question depends on a few circumstances.

Chapter 13

All disposable income (any income not used for reasonable and necessary expenses) is required to be paid into your Chapter 13 payment plan. And you guessed it, large tax returns are considered disposable income by the court. The local chapter 13 trustees generally like your tax refund to be less than $2,000. There are a few ways to protect your refund. If you received your tax refund prior to filing, it is considered the same as cash in the bank. If you regularly receive large tax refunds, it might be wise to adjust your tax withholdings in order to better afford your monthly chapter 13 bankruptcy payment.

Chapter 7

Like Chapter 13, any refunds received prior to filing a Chapter 7 can be treated as cash in the bank and protected using exemptions. A tax refund that has not yet been received also needs to be exempted. If you’ve already exhausted your exemptions, then you can spend it on necessary expenses, such as food, clothing, medical care, necessary repairs on your home or cars. Depending on how far in advance you’re able to plan, you can also simply adjust your withholding to minimize your refund. Please be mindful that the government will take your refund to satisfy any tax debt from previous tax years.

Having successfully helped well over a thousand clients navigate Chapter 7 and 13 bankruptcy, we would be happy to help anyone looking into bankruptcy. Feel free to contact your Yuba City bankruptcy attorney to schedule your free consultation at 530-797-4402.

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