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In Utah, the annual income tax refund is the most liquidated (taken) asset by bankruptcy trustees.  Why?  Because it is easy pickin's.  Often, the only way to avoid losing the tax refund money to the bankruptcy trustee is to make sure you receive it and spend it (appropriately) prior to filing the bankruptcy.  However, many I meet with are happy to be able to contribute something toward their debts, and/or don't want to delay their bankruptcy filing, so they choose to surrender either part or all of the refund money.  But, losing the money isn't the only consequence of having the trustee go after the refund.  Very often, a chapter 7 case will end up being a "no-asset" case if the trustee can't or won't go after the tax refund.  This means the case normally closes at the time the discharge is granted, meaning the case is completed in about 3 months.  However, if the trustee goes after the tax refund, the case becomes an "asset" case, and this means the trustee will spend months and months collecting the funds, distributing funds to creditors, and filing reports with the bankruptcy court.  It is not uncommon for an asset case to last at least 1 year.  Though the bankruptcy filer is not normally involved in any of the trustee's liquidation operation, the case does remain open which can cause problems in certain financial endeavors, like getting a loan.  Be sure to consider all of these implications when discussing the timing of your bankruptcy filing with a qualified attorney.Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.

It is not uncommon for someone to ask me if they can file a chapter 7 bankruptcy despite having filed a chapter 13 previously.  There are a few scenarios where this is applicable:

1. Chapter 13 was Dismissed.  A lot of chapter 13 cases get dismissed--the most common reason being the inability to make the monthly payment.  If a chapter 13 case gets dismissed before completing the 3-5 years of monthly payments, then no discharge is granted and the debts remain.  Some choose to begin the chapter 13 process again, but most choose to file a new chapter 7 case.  The fact that you recently filed a chapter 13 case has absolutely no bearing on your ability to file a new chapter 7 case.  The rules governing when and how often you file bankruptcy are centered around the discharge.  If you never received a discharge, then most likely you can file as soon as possible after the dismissal of the previous case.
2. Chapter 13 was Completed.  If you completed a chapter 13 case, which means you made monthly payments for 3 to 5 years or until 100% of the debts were paid off, then you can file a new chapter 7, but only after a certain amount of time has elapsed since the filing of the previous case.  Again, the time is measured from the "filing" date, not the "discharge" date.  If the plan paid off less than 70% of the unsecured debt, then you'll need to wait 6 years to file a new chapter 7 case.  If you wanted to file a new chapter 13 case, the wait would only be 4 years.  If you paid off more than 70% of the unsecured debt, then you won't have to wait the 6 years to file a new chapter 7 case.

Put simply, you can likely file a chapter 7 bankruptcy immediately if your chapter 13 was dismissed, and you'll likely need to wait 6 years if you received a chapter 13 discharge. Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.

This is the case of David Singer from Zion, Illinois which is located in Lake County, Illinois.  Mr. Singer has never filed a bankruptcy before.  He is not a homeowner.  He is living with family and friends.  He owns no vehicle.  He owns very little in the way of personal property.  He has a checking account and a savings account at Chase totaling $1000.  He has minor household goods worth approximately $400 and minor clothing worth approximately $200.  He is single with no dependent children and he is currently unemployed.
He is receiving unemployment income of approximately $740 per month.  His monthly expenses exceed $740 per month that he is bringing in.  So Mr. Singer is definitely in a position to get a fresh start.
Let’s look at Mr. Singer’s debts.  He has credit card bills, approximately $14,000 worth.  He has medical bills of only $2000 and he’s got past-due utilities of approximately $800.  Since he is unemployed and unable to make ends meet, Chapter 7 would be a strong recommendation for Mr. Singer.  Chapter 7 would eliminate the credit card debt, the medical bills and the personal loans and the past-due utility bills.  He would be able to save for his future and he would be able to get a fresh start within approximately 110 days from filing until discharge.
 
 

This is the case of John Zales who comes to me from Brookfield, Illinois which is located in Cook County.  John is interested in a Chapter 7 fresh start bankruptcy.  He has never filed for bankruptcy before.  He does not own any real estate.  He is currently renting from a landlord in Hodgkin’s, Illinois.  It is a month to month lease.
In terms of vehicles, he has a 1997 Chevy Blazer which is paid for and it’s worth approximately $1500.  He also has a 1969 Chevy Camaro which is estimated at approximately $10,000.  He does have a promissory note from the landlord on that vehicle at $8000, so very little equity what you pay off the promissory note.
In terms of personal property, he’s got a checking and savings account at Bank of America with $200-$400 in the account, minor household goods of $400, three guitars totaling $1500 and normal clothing of $800.  He does have an annuity which is worth approximately $100,000 but he cannot take it out until retirement.  He also has a union pension, same deal.  He is divorced, he’s living by himself and he is currently a laborer and a foreman and he makes approximately $18,000 per year.  He is receiving unemployment right now because his work is seasonal.
In terms of expenses, it’s $800 per month for rent, $25 for water and trash, $120 for cellular phone, $75 for cable TV, $400 for food, $75 for clothing, $300 for gas and transportation, $100 for recreation and auto insurance on the two vehicles is $160 per month.  He is also on a payment plan with the IRS totaling $200 per month.  When you look at the income minus the expenses, there is no money available to repay creditors so in this case, I would recommend a Chapter 7 fresh start bankruptcy and eliminate the $4300 owed to American Express, the $16,000 owed to Discover and the $21,000 owed to Citibank.  So Mr. Zales, Chapter 7 is my strong recommendation for you.